Correlation Between FibraHotel and SPDR Series
Can any of the company-specific risk be diversified away by investing in both FibraHotel and SPDR Series 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 SPDR Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibraHotel and SPDR Series Trust, you can compare the effects of market volatilities on FibraHotel and SPDR Series 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 SPDR Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibraHotel and SPDR Series.
Diversification Opportunities for FibraHotel and SPDR Series
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FibraHotel and SPDR is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding FibraHotel and SPDR Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Series Trust 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 SPDR Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Series Trust has no effect on the direction of FibraHotel i.e., FibraHotel and SPDR Series go up and down completely randomly.
Pair Corralation between FibraHotel and SPDR Series
Assuming the 90 days trading horizon FibraHotel is expected to generate 2.84 times less return on investment than SPDR Series. In addition to that, FibraHotel is 2.01 times more volatile than SPDR Series Trust. It trades about 0.02 of its total potential returns per unit of risk. SPDR Series Trust is currently generating about 0.09 per unit of volatility. If you would invest 256,547 in SPDR Series Trust on September 1, 2024 and sell it today you would earn a total of 44,553 from holding SPDR Series Trust or generate 17.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FibraHotel vs. SPDR Series Trust
Performance |
| Timeline |
| FibraHotel |
| SPDR Series Trust |
FibraHotel and SPDR Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibraHotel and SPDR Series
The main advantage of trading using opposite FibraHotel and SPDR Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibraHotel position performs unexpectedly, SPDR Series 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 SPDR Series will offset losses from the drop in SPDR Series' long position.| FibraHotel vs. GMxico Transportes SAB | FibraHotel vs. Samsung Electronics Co | FibraHotel vs. Micron Technology | FibraHotel vs. CVS Health |
| SPDR Series vs. Promotora y Operadora | SPDR Series vs. UnitedHealth Group Incorporated | SPDR Series vs. Qulitas Controladora SAB | SPDR Series vs. Hoteles City Express |
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 CEOs Directory module to screen CEOs from public companies around the world.
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