Correlation Between FIBRA Macquarie and Fibra Mty

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

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

Diversification Opportunities for FIBRA Macquarie and Fibra Mty

-0.51

Correlation Coefficient

FIBRA Macquarie  Fibra Mty

Excellent diversification

The 3 months correlation between FIBRA and Fibra is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Macquarie Mxico and Fibra Mty SAPI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra Mty SAPI and FIBRA Macquarie 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 Macquarie Mxico are associated (or correlated) with Fibra Mty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibra Mty SAPI has no effect on the direction of FIBRA Macquarie i.e., FIBRA Macquarie and Fibra Mty go up and down completely randomly.

Pair Corralation between FIBRA Macquarie and Fibra Mty

Assuming the 90 days trading horizon FIBRA Macquarie Mxico is expected to under-perform the Fibra Mty. In addition to that, FIBRA Macquarie is 1.44 times more volatile than Fibra Mty SAPI. It trades about -0.05 of its total potential returns per unit of risk. Fibra Mty SAPI is currently generating about 0.03 per unit of volatility. If you would invest  1,032  in Fibra Mty SAPI on October 26, 2024 and sell it today you would earn a total of  12.00  from holding Fibra Mty SAPI or generate 1.16% return on investment over 90 days.

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

FIBRA Macquarie Mxico  vs.  Fibra Mty SAPI

FIBRA Macquarie Mxico

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FIBRA Macquarie Mxico has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, FIBRA Macquarie is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Fibra Mty SAPI

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fibra Mty SAPI are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Fibra Mty is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with FIBRA Macquarie and Fibra Mty

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

The idea behind FIBRA Macquarie Mxico and Fibra Mty SAPI 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.