Correlation Between Casa De and FibraHotel
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By analyzing existing cross correlation between Casa de Bolsa and FibraHotel, you can compare the effects of market volatilities on Casa De and FibraHotel 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 Casa De with a short position of FibraHotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casa De and FibraHotel.
Diversification Opportunities for Casa De and FibraHotel
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Casa and FibraHotel is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Casa de Bolsa and FibraHotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibraHotel and Casa De 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 Casa de Bolsa are associated (or correlated) with FibraHotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibraHotel has no effect on the direction of Casa De i.e., Casa De and FibraHotel go up and down completely randomly.
Pair Corralation between Casa De and FibraHotel
Assuming the 90 days trading horizon Casa De is expected to generate 2.77 times less return on investment than FibraHotel. But when comparing it to its historical volatility, Casa de Bolsa is 5.64 times less risky than FibraHotel. It trades about 0.13 of its potential returns per unit of risk. FibraHotel is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 847.00 in FibraHotel on September 15, 2024 and sell it today you would earn a total of 61.00 from holding FibraHotel or generate 7.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Casa de Bolsa vs. FibraHotel
Performance |
Timeline |
Casa de Bolsa |
FibraHotel |
Casa De and FibraHotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Casa De and FibraHotel
The main advantage of trading using opposite Casa De and FibraHotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casa De position performs unexpectedly, FibraHotel 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 FibraHotel will offset losses from the drop in FibraHotel's long position.Casa De vs. Samsung Electronics Co | Casa De vs. Sony Group | Casa De vs. Taiwan Semiconductor Manufacturing | Casa De vs. Alibaba Group Holding |
FibraHotel vs. Fibra UNO | FibraHotel vs. Casa de Bolsa | FibraHotel vs. The Select Sector | FibraHotel vs. Promotora y Operadora |
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 Stocks Directory module to find actively traded stocks across global markets.
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