Correlation Between OPERADORA and Fluor

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

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

Diversification Opportunities for OPERADORA and Fluor

-0.26

Correlation Coefficient

OPERADORA  Fluor

Very good diversification

The 3 months correlation between OPERADORA and Fluor is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding OPERADORA DE SITES and Fluor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluor and OPERADORA 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 OPERADORA DE SITES are associated (or correlated) with Fluor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluor has no effect on the direction of OPERADORA i.e., OPERADORA and Fluor go up and down completely randomly.

Pair Corralation between OPERADORA and Fluor

If you would invest  98,527  in Fluor on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Fluor or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

OPERADORA DE SITES  vs.  Fluor

OPERADORA DE SITES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OPERADORA DE SITES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Fluor

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fluor are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with OPERADORA and Fluor

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

The idea behind OPERADORA DE SITES and Fluor 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.