Correlation Between Fibra UNO and American International
Can any of the company-specific risk be diversified away by investing in both Fibra UNO and American International 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 Fibra UNO and American International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fibra UNO and American International Group, you can compare the effects of market volatilities on Fibra UNO and American International 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 Fibra UNO with a short position of American International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibra UNO and American International.
Diversification Opportunities for Fibra UNO and American International
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fibra and American is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fibra UNO and American International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American International and Fibra UNO 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 Fibra UNO are associated (or correlated) with American International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American International has no effect on the direction of Fibra UNO i.e., Fibra UNO and American International go up and down completely randomly.
Pair Corralation between Fibra UNO and American International
If you would invest 144,100 in American International Group on August 30, 2024 and sell it today you would earn a total of 0.00 from holding American International Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fibra UNO vs. American International Group
Performance |
| Timeline |
| Fibra UNO |
| American International |
Fibra UNO and American International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibra UNO and American International
The main advantage of trading using opposite Fibra UNO and American International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibra UNO position performs unexpectedly, American International 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 American International will offset losses from the drop in American International's long position.| Fibra UNO vs. The Bank of | Fibra UNO vs. Micron Technology | Fibra UNO vs. Southern Copper | Fibra UNO vs. Ameriprise Financial |
| American International vs. Applied Materials | American International vs. Delta Air Lines | American International vs. McEwen Mining | American International vs. Micron Technology |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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