Correlation Between Fluor and Desarrolladora Homex

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

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

Diversification Opportunities for Fluor and Desarrolladora Homex

0.0

Correlation Coefficient

Fluor  Desarrolladora Homex

Pay attention - limited upside

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

Pair Corralation between Fluor and Desarrolladora Homex

If you would invest (100.00) in Fluor on October 24, 2024 and sell it today you would earn a total of  100.00  from holding Fluor or generate -100.0% return on investment over 90 days.

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

Fluor  vs.  Desarrolladora Homex SAB

Fluor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Fluor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Desarrolladora Homex SAB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Desarrolladora Homex SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Fluor and Desarrolladora Homex

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

The idea behind Fluor and Desarrolladora Homex SAB 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.