Correlation Between Capital One and FIBRA Storage
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By analyzing existing cross correlation between Capital One Financial and FIBRA Storage, you can compare the effects of market volatilities on Capital One and FIBRA Storage 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 Capital One with a short position of FIBRA Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital One and FIBRA Storage.
Diversification Opportunities for Capital One and FIBRA Storage
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capital and FIBRA is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Capital One Financial and FIBRA Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Storage and Capital One 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 Capital One Financial are associated (or correlated) with FIBRA Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Storage has no effect on the direction of Capital One i.e., Capital One and FIBRA Storage go up and down completely randomly.
Pair Corralation between Capital One and FIBRA Storage
Assuming the 90 days trading horizon Capital One Financial is expected to generate 1.9 times more return on investment than FIBRA Storage. However, Capital One is 1.9 times more volatile than FIBRA Storage. It trades about 0.24 of its potential returns per unit of risk. FIBRA Storage is currently generating about 0.19 per unit of risk. If you would invest 267,115 in Capital One Financial on August 30, 2024 and sell it today you would earn a total of 115,871 from holding Capital One Financial or generate 43.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital One Financial vs. FIBRA Storage
Performance |
| Timeline |
| Capital One Financial |
| FIBRA Storage |
Capital One and FIBRA Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital One and FIBRA Storage
The main advantage of trading using opposite Capital One and FIBRA Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital One position performs unexpectedly, FIBRA Storage 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 FIBRA Storage will offset losses from the drop in FIBRA Storage's long position.| Capital One vs. Mastercard Incorporated | Capital One vs. Gentera SAB de | Capital One vs. Unifin Financiera S |
| FIBRA Storage vs. Microsoft | FIBRA Storage vs. Amazon Inc | FIBRA Storage vs. Berkshire Hathaway | FIBRA Storage vs. Tesla Inc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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