Correlation Between Kinea Oportunidades and Parque Dom

Can any of the company-specific risk be diversified away by investing in both Kinea Oportunidades and Parque Dom at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kinea Oportunidades and Parque Dom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kinea Oportunidades Real and Parque Dom Pedro, you can compare the effects of market volatilities on Kinea Oportunidades and Parque Dom and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kinea Oportunidades with a short position of Parque Dom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinea Oportunidades and Parque Dom.

Diversification Opportunities for Kinea Oportunidades and Parque Dom

-0.26

Correlation Coefficient

Kinea Oportunidades  Parque Dom

Very good diversification

The 3 months correlation between Kinea and Parque is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kinea Oportunidades Real and Parque Dom Pedro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parque Dom Pedro and Kinea Oportunidades is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kinea Oportunidades Real are associated (or correlated) with Parque Dom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parque Dom Pedro has no effect on the direction of Kinea Oportunidades i.e., Kinea Oportunidades and Parque Dom go up and down completely randomly.

Pair Corralation between Kinea Oportunidades and Parque Dom

Assuming the 90 days trading horizon Kinea Oportunidades Real is expected to under-perform the Parque Dom. But the fund apears to be less risky and, when comparing its historical volatility, Kinea Oportunidades Real is 1.17 times less risky than Parque Dom. The fund trades about -0.01 of its potential returns per unit of risk. The Parque Dom Pedro is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  162,482  in Parque Dom Pedro on April 20, 2025 and sell it today you would earn a total of  84,254  from holding Parque Dom Pedro or generate 51.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	81.87%
Values	Daily Returns

Kinea Oportunidades Real  vs.  Parque Dom Pedro

Kinea Oportunidades Real

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kinea Oportunidades Real has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Kinea Oportunidades is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Parque Dom Pedro

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Parque Dom Pedro are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak fundamental indicators, Parque Dom may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Kinea Oportunidades and Parque Dom

The main advantage of trading using opposite Kinea Oportunidades and Parque Dom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinea Oportunidades position performs unexpectedly, Parque Dom can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Parque Dom will offset losses from the drop in Parque Dom's long position.

The idea behind Kinea Oportunidades Real and Parque Dom Pedro pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.