Correlation Between Fomento De and Fidere Patrimonio
Can any of the company-specific risk be diversified away by investing in both Fomento De and Fidere Patrimonio 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 Fomento De and Fidere Patrimonio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fomento de Construcciones and Fidere Patrimonio SOCIMI, you can compare the effects of market volatilities on Fomento De and Fidere Patrimonio 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 Fomento De with a short position of Fidere Patrimonio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento De and Fidere Patrimonio.
Diversification Opportunities for Fomento De and Fidere Patrimonio
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fomento and Fidere is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Fomento de Construcciones and Fidere Patrimonio SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidere Patrimonio SOCIMI and Fomento De 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 Fomento de Construcciones are associated (or correlated) with Fidere Patrimonio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidere Patrimonio SOCIMI has no effect on the direction of Fomento De i.e., Fomento De and Fidere Patrimonio go up and down completely randomly.
Pair Corralation between Fomento De and Fidere Patrimonio
If you would invest 928.00 in Fomento de Construcciones on November 27, 2024 and sell it today you would earn a total of 136.00 from holding Fomento de Construcciones or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fomento de Construcciones vs. Fidere Patrimonio SOCIMI
Performance |
| Timeline |
| Fomento de Construcciones |
| Fidere Patrimonio SOCIMI |
Fomento De and Fidere Patrimonio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento De and Fidere Patrimonio
The main advantage of trading using opposite Fomento De and Fidere Patrimonio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento De position performs unexpectedly, Fidere Patrimonio 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 Fidere Patrimonio will offset losses from the drop in Fidere Patrimonio's long position.| Fomento De vs. Ferrovial SA | Fomento De vs. ACS Actividades de | Fomento De vs. Acciona | Fomento De vs. Indra A |
| Fidere Patrimonio vs. Millenium Hotels Real | Fidere Patrimonio vs. Techo Hogar SOCIMI, | Fidere Patrimonio vs. Caixabank SA | Fidere Patrimonio vs. Arteche Lantegi Elkartea |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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