Correlation Between LOG Commercial and Rede DOr

Can any of the company-specific risk be diversified away by investing in both LOG Commercial and Rede DOr 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 LOG Commercial and Rede DOr into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LOG Commercial Properties and Rede DOr So, you can compare the effects of market volatilities on LOG Commercial and Rede DOr 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 LOG Commercial with a short position of Rede DOr. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOG Commercial and Rede DOr.

Diversification Opportunities for LOG Commercial and Rede DOr

0.72

Correlation Coefficient

LOG Commercial  Rede DOr

Poor diversification

The 3 months correlation between LOG and Rede is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding LOG Commercial Properties and Rede DOr So in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rede DOr So and LOG Commercial 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 LOG Commercial Properties are associated (or correlated) with Rede DOr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rede DOr So has no effect on the direction of LOG Commercial i.e., LOG Commercial and Rede DOr go up and down completely randomly.

Pair Corralation between LOG Commercial and Rede DOr

Assuming the 90 days trading horizon LOG Commercial is expected to generate 18.11 times less return on investment than Rede DOr. In addition to that, LOG Commercial is 1.02 times more volatile than Rede DOr So. It trades about 0.0 of its total potential returns per unit of risk. Rede DOr So is currently generating about 0.08 per unit of volatility. If you would invest  3,074  in Rede DOr So on April 24, 2025 and sell it today you would earn a total of  236.00  from holding Rede DOr So or generate 7.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

LOG Commercial Properties  vs.  Rede DOr So

LOG Commercial Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days LOG Commercial Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, LOG Commercial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Rede DOr So

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rede DOr So are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Rede DOr may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with LOG Commercial and Rede DOr

The main advantage of trading using opposite LOG Commercial and Rede DOr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOG Commercial position performs unexpectedly, Rede DOr 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 Rede DOr will offset losses from the drop in Rede DOr's long position.

The idea behind LOG Commercial Properties and Rede DOr So 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.

Check out your portfolio center.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.