Correlation Between Maxi Renda and XP Selection

Can any of the company-specific risk be diversified away by investing in both Maxi Renda and XP Selection 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 Maxi Renda and XP Selection into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Maxi Renda and XP Selection

0.0

Correlation Coefficient

Maxi Renda  XP Selection

Pay attention - limited upside

The 3 months correlation between Maxi and XPSF11 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maxi Renda Fundo and XP Selection Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XP Selection Fundo and Maxi Renda 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 Maxi Renda Fundo are associated (or correlated) with XP Selection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XP Selection Fundo has no effect on the direction of Maxi Renda i.e., Maxi Renda and XP Selection go up and down completely randomly.

Pair Corralation between Maxi Renda and XP Selection

If you would invest  889.00  in Maxi Renda Fundo on April 23, 2025 and sell it today you would earn a total of  58.00  from holding Maxi Renda Fundo or generate 6.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Maxi Renda Fundo  vs.  XP Selection Fundo

Maxi Renda Fundo

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Maxi Renda Fundo are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Maxi Renda may actually be approaching a critical reversion point that can send shares even higher in August 2025.

XP Selection Fundo

Risk-Adjusted Performance

Modest

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

Pair Trading with Maxi Renda and XP Selection

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

The idea behind Maxi Renda Fundo and XP Selection Fundo 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.