Correlation Between Fomento Economico and KIMCO
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By analyzing existing cross correlation between Fomento Economico Mexicano and KIMCO RLTY P, you can compare the effects of market volatilities on Fomento Economico and KIMCO 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 Economico with a short position of KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento Economico and KIMCO.
Diversification Opportunities for Fomento Economico and KIMCO
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fomento and KIMCO is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Economico Mexicano and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P and Fomento Economico 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 Economico Mexicano are associated (or correlated) with KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Fomento Economico i.e., Fomento Economico and KIMCO go up and down completely randomly.
Pair Corralation between Fomento Economico and KIMCO
Considering the 90-day investment horizon Fomento Economico Mexicano is expected to generate 1.14 times more return on investment than KIMCO. However, Fomento Economico is 1.14 times more volatile than KIMCO RLTY P. It trades about -0.07 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about -0.21 per unit of risk. If you would invest 8,471 in Fomento Economico Mexicano on October 20, 2024 and sell it today you would lose (221.00) from holding Fomento Economico Mexicano or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 70.0% |
| Values | Daily Returns |
Fomento Economico Mexicano vs. KIMCO RLTY P
Performance |
| Timeline |
| Fomento Economico |
| KIMCO RLTY P |
Fomento Economico and KIMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento Economico and KIMCO
The main advantage of trading using opposite Fomento Economico and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Economico position performs unexpectedly, KIMCO 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 KIMCO will offset losses from the drop in KIMCO's long position.| Fomento Economico vs. Ambev SA ADR | Fomento Economico vs. Boston Beer | Fomento Economico vs. Carlsberg AS | Fomento Economico vs. Molson Coors Brewing |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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