Correlation Between FibroGen and Promotora
Can any of the company-specific risk be diversified away by investing in both FibroGen and Promotora 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 FibroGen and Promotora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibroGen and Promotora y Operadora, you can compare the effects of market volatilities on FibroGen and Promotora 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 FibroGen with a short position of Promotora. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibroGen and Promotora.
Diversification Opportunities for FibroGen and Promotora
Modest diversification
The 3 months correlation between FibroGen and Promotora is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding FibroGen and Promotora y Operadora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promotora y Operadora and FibroGen 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 FibroGen are associated (or correlated) with Promotora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promotora y Operadora has no effect on the direction of FibroGen i.e., FibroGen and Promotora go up and down completely randomly.
Pair Corralation between FibroGen and Promotora
Assuming the 90 days trading horizon FibroGen is expected to generate 2.61 times more return on investment than Promotora. However, FibroGen is 2.61 times more volatile than Promotora y Operadora. It trades about 0.25 of its potential returns per unit of risk. Promotora y Operadora is currently generating about 0.33 per unit of risk. If you would invest 640.00 in FibroGen on September 1, 2024 and sell it today you would earn a total of 150.00 from holding FibroGen or generate 23.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FibroGen vs. Promotora y Operadora
Performance |
| Timeline |
| FibroGen |
| Promotora y Operadora |
FibroGen and Promotora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibroGen and Promotora
The main advantage of trading using opposite FibroGen and Promotora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibroGen position performs unexpectedly, Promotora 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 Promotora will offset losses from the drop in Promotora's long position.| FibroGen vs. Deutsche Bank Aktiengesellschaft | FibroGen vs. Genworth Financial | FibroGen vs. Verizon Communications | FibroGen vs. Grupo Sports World |
| Promotora vs. Gruma SAB de | Promotora vs. Grupo Aeroportuario del | Promotora vs. Grupo Aeroportuario del | Promotora vs. Grupo Aeroportuario del |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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