Correlation Between VECTIS DATAGRO and BB Renda

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

By analyzing existing cross correlation between VECTIS DATAGRO CR and BB Renda Corporativa, you can compare the effects of market volatilities on VECTIS DATAGRO and BB Renda 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 VECTIS DATAGRO with a short position of BB Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of VECTIS DATAGRO and BB Renda.

Diversification Opportunities for VECTIS DATAGRO and BB Renda

0.79

Correlation Coefficient

VECTIS DATAGRO  BB Renda

Poor diversification

The 3 months correlation between VECTIS and BBRC11 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding VECTIS DATAGRO CR and BB Renda Corporativa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Renda Corporativa and VECTIS DATAGRO 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 VECTIS DATAGRO CR are associated (or correlated) with BB Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Renda Corporativa has no effect on the direction of VECTIS DATAGRO i.e., VECTIS DATAGRO and BB Renda go up and down completely randomly.

Pair Corralation between VECTIS DATAGRO and BB Renda

Assuming the 90 days trading horizon VECTIS DATAGRO CR is expected to under-perform the BB Renda. In addition to that, VECTIS DATAGRO is 1.11 times more volatile than BB Renda Corporativa. It trades about -0.06 of its total potential returns per unit of risk. BB Renda Corporativa is currently generating about -0.06 per unit of volatility. If you would invest  10,179  in BB Renda Corporativa on April 21, 2025 and sell it today you would lose (404.00) from holding BB Renda Corporativa or give up 3.97% of portfolio value over 90 days.

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

VECTIS DATAGRO CR  vs.  BB Renda Corporativa

VECTIS DATAGRO CR

Risk-Adjusted Performance

Very Weak

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

BB Renda Corporativa

Risk-Adjusted Performance

Very Weak

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

Pair Trading with VECTIS DATAGRO and BB Renda

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

The idea behind VECTIS DATAGRO CR and BB Renda Corporativa 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.