Correlation Between FIBRA Storage and Walmart

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

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

Diversification Opportunities for FIBRA Storage and Walmart

0.0

Correlation Coefficient

FIBRA Storage  Walmart

Pay attention - limited upside

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

Pair Corralation between FIBRA Storage and Walmart

If you would invest  1,785  in FIBRA Storage on October 5, 2024 and sell it today you would earn a total of  40.00  from holding FIBRA Storage or generate 2.24% return on investment over 90 days.

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

FIBRA Storage  vs.  Walmart

FIBRA Storage

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FIBRA Storage are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, FIBRA Storage may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Walmart

Risk-Adjusted Performance

0 of 100

Solid

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

Pair Trading with FIBRA Storage and Walmart

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

The idea behind FIBRA Storage and Walmart 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.