Correlation Between Home Depot and FIBRA Storage
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By analyzing existing cross correlation between The Home Depot and FIBRA Storage, you can compare the effects of market volatilities on Home Depot and FIBRA Storage 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 Home Depot with a short position of FIBRA Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and FIBRA Storage.
Diversification Opportunities for Home Depot and FIBRA Storage
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Home and FIBRA is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot and FIBRA Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Storage and Home Depot 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 The Home Depot are associated (or correlated) with FIBRA Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Storage has no effect on the direction of Home Depot i.e., Home Depot and FIBRA Storage go up and down completely randomly.
Pair Corralation between Home Depot and FIBRA Storage
Assuming the 90 days horizon Home Depot is expected to generate 9.12 times less return on investment than FIBRA Storage. In addition to that, Home Depot is 2.97 times more volatile than FIBRA Storage. It trades about 0.02 of its total potential returns per unit of risk. FIBRA Storage is currently generating about 0.51 per unit of volatility. If you would invest 1,706 in FIBRA Storage on September 15, 2024 and sell it today you would earn a total of 84.00 from holding FIBRA Storage or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Home Depot vs. FIBRA Storage
Performance |
| Timeline |
| Home Depot |
| FIBRA Storage |
Home Depot and FIBRA Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and FIBRA Storage
The main advantage of trading using opposite Home Depot and FIBRA Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, FIBRA Storage 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 Storage will offset losses from the drop in FIBRA Storage's long position.| Home Depot vs. FIBRA Storage | Home Depot vs. GMxico Transportes SAB | Home Depot vs. Micron Technology | Home Depot vs. United Airlines Holdings |
| FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
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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