Correlation Between Fundo De and Minerva SA

Can any of the company-specific risk be diversified away by investing in both Fundo De and Minerva SA 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 Fundo De and Minerva SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fundo De Investimento and Minerva SA, you can compare the effects of market volatilities on Fundo De and Minerva SA 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 Fundo De with a short position of Minerva SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo De and Minerva SA.

Diversification Opportunities for Fundo De and Minerva SA

-0.69

Correlation Coefficient

Fundo De  Minerva SA

Excellent diversification

The 3 months correlation between Fundo and Minerva is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fundo De Investimento and Minerva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerva SA and Fundo De 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 Fundo De Investimento are associated (or correlated) with Minerva SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerva SA has no effect on the direction of Fundo De i.e., Fundo De and Minerva SA go up and down completely randomly.

Pair Corralation between Fundo De and Minerva SA

Assuming the 90 days trading horizon Fundo De Investimento is expected to generate 0.67 times more return on investment than Minerva SA. However, Fundo De Investimento is 1.49 times less risky than Minerva SA. It trades about 0.1 of its potential returns per unit of risk. Minerva SA is currently generating about -0.16 per unit of risk. If you would invest  18,500  in Fundo De Investimento on April 24, 2025 and sell it today you would earn a total of  2,500  from holding Fundo De Investimento or generate 13.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Fundo De Investimento  vs.  Minerva SA

Fundo De Investimento

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fundo De Investimento are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Fundo De sustained solid returns over the last few months and may actually be approaching a breakup point.

Minerva SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Minerva SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Fundo De and Minerva SA

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

The idea behind Fundo De Investimento and Minerva SA 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.