Correlation Between Fibra UNO and British Land

Can any of the company-specific risk be diversified away by investing in both Fibra UNO and British Land 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 Fibra UNO and British Land into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fibra UNO and British Land, you can compare the effects of market volatilities on Fibra UNO and British Land 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 Fibra UNO with a short position of British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibra UNO and British Land.

Diversification Opportunities for Fibra UNO and British Land

0.0

Correlation Coefficient

Fibra UNO  British Land

Pay attention - limited upside

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

Pair Corralation between Fibra UNO and British Land

If you would invest  106.00  in Fibra UNO on December 29, 2024 and sell it today you would earn a total of  13.00  from holding Fibra UNO or generate 12.26% return on investment over 90 days.

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

Fibra UNO  vs.  British Land

Fibra UNO

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fibra UNO are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Fibra UNO reported solid returns over the last few months and may actually be approaching a breakup point.

British Land

Risk-Adjusted Performance

Very Weak

Over the last 90 days British Land has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, British Land is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Fibra UNO and British Land

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

The idea behind Fibra UNO and British Land 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 Transaction History module to view history of all your transactions and understand their impact on performance.