Correlation Between FIBRA Prologis and FIBRA Macquarie

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

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

Diversification Opportunities for FIBRA Prologis and FIBRA Macquarie

0.0

Correlation Coefficient

FIBRA Prologis  FIBRA Macquarie

Pay attention - limited upside

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

Pair Corralation between FIBRA Prologis and FIBRA Macquarie

If you would invest  5,757  in FIBRA Prologis on December 25, 2024 and sell it today you would earn a total of  812.00  from holding FIBRA Prologis or generate 14.1% return on investment over 90 days.

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

FIBRA Prologis  vs.  FIBRA Macquarie Mxico

FIBRA Prologis

Risk-Adjusted Performance

OK

Over the last 90 days FIBRA Prologis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite weak basic indicators, FIBRA Prologis disclosed solid returns over the last few months and may actually be approaching a breakup point.

FIBRA Macquarie Mxico

Risk-Adjusted Performance

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 current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with FIBRA Prologis and FIBRA Macquarie

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

The idea behind FIBRA Prologis and FIBRA Macquarie Mxico 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.