Correlation Between FibraHotel and Banco Bilbao
Can any of the company-specific risk be diversified away by investing in both FibraHotel and Banco Bilbao 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 FibraHotel and Banco Bilbao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibraHotel and Banco Bilbao Vizcaya, you can compare the effects of market volatilities on FibraHotel and Banco Bilbao 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 FibraHotel with a short position of Banco Bilbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibraHotel and Banco Bilbao.
Diversification Opportunities for FibraHotel and Banco Bilbao
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FibraHotel and Banco is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FibraHotel and Banco Bilbao Vizcaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Bilbao Vizcaya and FibraHotel 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 FibraHotel are associated (or correlated) with Banco Bilbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Bilbao Vizcaya has no effect on the direction of FibraHotel i.e., FibraHotel and Banco Bilbao go up and down completely randomly.
Pair Corralation between FibraHotel and Banco Bilbao
Assuming the 90 days trading horizon FibraHotel is expected to generate 0.21 times more return on investment than Banco Bilbao. However, FibraHotel is 4.67 times less risky than Banco Bilbao. It trades about -0.3 of its potential returns per unit of risk. Banco Bilbao Vizcaya is currently generating about -0.12 per unit of risk. If you would invest 1,000.00 in FibraHotel on January 22, 2025 and sell it today you would lose (37.00) from holding FibraHotel or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FibraHotel vs. Banco Bilbao Vizcaya
Performance |
| Timeline |
| FibraHotel |
| Banco Bilbao Vizcaya |
FibraHotel and Banco Bilbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibraHotel and Banco Bilbao
The main advantage of trading using opposite FibraHotel and Banco Bilbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibraHotel position performs unexpectedly, Banco Bilbao 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 Banco Bilbao will offset losses from the drop in Banco Bilbao's long position.| FibraHotel vs. KB Home | FibraHotel vs. Grupo Sports World | FibraHotel vs. Monster Beverage Corp | FibraHotel vs. FIBRA Storage |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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