Correlation Between First Solar and Fibra Plus
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By analyzing existing cross correlation between First Solar and Fibra Plus, you can compare the effects of market volatilities on First Solar and Fibra Plus 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 First Solar with a short position of Fibra Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Solar and Fibra Plus.
Diversification Opportunities for First Solar and Fibra Plus
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Fibra is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding First Solar and Fibra Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra Plus and First Solar 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 First Solar are associated (or correlated) with Fibra Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibra Plus has no effect on the direction of First Solar i.e., First Solar and Fibra Plus go up and down completely randomly.
Pair Corralation between First Solar and Fibra Plus
Assuming the 90 days trading horizon First Solar is expected to generate 1.23 times more return on investment than Fibra Plus. However, First Solar is 1.23 times more volatile than Fibra Plus. It trades about -0.03 of its potential returns per unit of risk. Fibra Plus is currently generating about -0.1 per unit of risk. If you would invest 488,927 in First Solar on August 30, 2024 and sell it today you would lose (90,427) from holding First Solar or give up 18.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Solar vs. Fibra Plus
Performance |
| Timeline |
| First Solar |
| Fibra Plus |
First Solar and Fibra Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Solar and Fibra Plus
The main advantage of trading using opposite First Solar and Fibra Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Solar position performs unexpectedly, Fibra Plus 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 Fibra Plus will offset losses from the drop in Fibra Plus' long position.| First Solar vs. Verizon Communications | First Solar vs. Costco Wholesale | First Solar vs. CVS Health | First Solar vs. United States Steel |
| Fibra Plus vs. Grupo Hotelero Santa | Fibra Plus vs. Southern Copper | Fibra Plus vs. United Airlines Holdings | Fibra Plus vs. UnitedHealth Group Incorporated |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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