Correlation Between FIBRA Storage and Procorp SAB

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

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

Diversification Opportunities for FIBRA Storage and Procorp SAB

0.0

Correlation Coefficient

FIBRA Storage  Procorp SAB

Pay attention - limited upside

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

Pair Corralation between FIBRA Storage and Procorp SAB

If you would invest  1,575  in FIBRA Storage on September 17, 2024 and sell it today you would earn a total of  215.00  from holding FIBRA Storage or generate 13.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

FIBRA Storage  vs.  Procorp SAB de

FIBRA Storage

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FIBRA Storage are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, FIBRA Storage exhibited solid returns over the last few months and may actually be approaching a breakup point.

Procorp SAB de

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Procorp SAB de has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Procorp SAB 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 Storage and Procorp SAB

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

The idea behind FIBRA Storage and Procorp SAB de 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.