Correlation Between Vinci Corporate and EXES FUNDO

Can any of the company-specific risk be diversified away by investing in both Vinci Corporate and EXES FUNDO 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 Vinci Corporate and EXES FUNDO into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vinci Corporate Fundo and EXES FUNDO DE, you can compare the effects of market volatilities on Vinci Corporate and EXES FUNDO 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 Vinci Corporate with a short position of EXES FUNDO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinci Corporate and EXES FUNDO.

Diversification Opportunities for Vinci Corporate and EXES FUNDO

0.3

Correlation Coefficient

Vinci Corporate  EXES FUNDO

Weak diversification

The 3 months correlation between Vinci and EXES is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Vinci Corporate Fundo and EXES FUNDO DE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXES FUNDO DE and Vinci Corporate 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 Vinci Corporate Fundo are associated (or correlated) with EXES FUNDO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXES FUNDO DE has no effect on the direction of Vinci Corporate i.e., Vinci Corporate and EXES FUNDO go up and down completely randomly.

Pair Corralation between Vinci Corporate and EXES FUNDO

Assuming the 90 days trading horizon Vinci Corporate is expected to generate 5.12 times less return on investment than EXES FUNDO. In addition to that, Vinci Corporate is 2.0 times more volatile than EXES FUNDO DE. It trades about 0.01 of its total potential returns per unit of risk. EXES FUNDO DE is currently generating about 0.11 per unit of volatility. If you would invest  900.00  in EXES FUNDO DE on April 25, 2025 and sell it today you would earn a total of  33.00  from holding EXES FUNDO DE or generate 3.67% return on investment over 90 days.

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

Vinci Corporate Fundo  vs.  EXES FUNDO DE

Vinci Corporate Fundo

Risk-Adjusted Performance

Weak

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

EXES FUNDO DE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EXES FUNDO DE are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong technical and fundamental indicators, EXES FUNDO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vinci Corporate and EXES FUNDO

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

The idea behind Vinci Corporate Fundo and EXES FUNDO DE 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.