Correlation Between Extra Space and FIBRA Macquarie
Can any of the company-specific risk be diversified away by investing in both Extra Space and FIBRA Macquarie 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 Extra Space and FIBRA Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Extra Space Storage and FIBRA Macquarie Mxico, you can compare the effects of market volatilities on Extra Space and FIBRA Macquarie 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 Extra Space with a short position of FIBRA Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Extra Space and FIBRA Macquarie.
Diversification Opportunities for Extra Space and FIBRA Macquarie
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Extra and FIBRA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Extra Space Storage and FIBRA Macquarie Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Macquarie Mxico and Extra Space 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 Extra Space Storage are associated (or correlated) with FIBRA Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Macquarie Mxico has no effect on the direction of Extra Space i.e., Extra Space and FIBRA Macquarie go up and down completely randomly.
Pair Corralation between Extra Space and FIBRA Macquarie
Considering the 90-day investment horizon Extra Space Storage is expected to generate 0.55 times more return on investment than FIBRA Macquarie. However, Extra Space Storage is 1.82 times less risky than FIBRA Macquarie. It trades about 0.1 of its potential returns per unit of risk. FIBRA Macquarie Mxico is currently generating about -0.04 per unit of risk. If you would invest 13,994 in Extra Space Storage on September 3, 2024 and sell it today you would earn a total of 3,102 from holding Extra Space Storage or generate 22.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.93% |
| Values | Daily Returns |
Extra Space Storage vs. FIBRA Macquarie Mxico
Performance |
| Timeline |
| Extra Space Storage |
| FIBRA Macquarie Mxico |
Extra Space and FIBRA Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Extra Space and FIBRA Macquarie
The main advantage of trading using opposite Extra Space and FIBRA Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Extra Space position performs unexpectedly, FIBRA Macquarie 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 Macquarie will offset losses from the drop in FIBRA Macquarie's long position.| Extra Space vs. SCOR PK | Extra Space vs. Aquagold International | Extra Space vs. SPACE | Extra Space vs. T Rowe Price |
| FIBRA Macquarie vs. Palo Alto Networks | FIBRA Macquarie vs. Singular Genomics Systems | FIBRA Macquarie vs. BlackRock | FIBRA Macquarie vs. Deckers Outdoor |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |