Correlation Between Fibra UNO and Global Net
Can any of the company-specific risk be diversified away by investing in both Fibra UNO and Global Net 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 UNO and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fibra UNO and Global Net Lease,, you can compare the effects of market volatilities on Fibra UNO and Global Net 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 UNO with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibra UNO and Global Net.
Diversification Opportunities for Fibra UNO and Global Net
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fibra and Global is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fibra UNO and Global Net Lease, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease, and Fibra UNO 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 UNO are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease, has no effect on the direction of Fibra UNO i.e., Fibra UNO and Global Net go up and down completely randomly.
Pair Corralation between Fibra UNO and Global Net
Assuming the 90 days horizon Fibra UNO is expected to under-perform the Global Net. In addition to that, Fibra UNO is 2.31 times more volatile than Global Net Lease,. It trades about -0.05 of its total potential returns per unit of risk. Global Net Lease, is currently generating about 0.04 per unit of volatility. If you would invest 659.00 in Global Net Lease, on August 25, 2024 and sell it today you would earn a total of 77.00 from holding Global Net Lease, or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.11% |
| Values | Daily Returns |
Fibra UNO vs. Global Net Lease,
Performance |
| Timeline |
| Fibra UNO |
| Global Net Lease, |
Fibra UNO and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibra UNO and Global Net
The main advantage of trading using opposite Fibra UNO and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibra UNO position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Fibra UNO vs. British Land | Fibra UNO vs. Global Net Lease, | Fibra UNO vs. VICI Properties | Fibra UNO vs. British Land |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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