Correlation Between El Puerto and FibraHotel
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By analyzing existing cross correlation between El Puerto de and FibraHotel, you can compare the effects of market volatilities on El Puerto and FibraHotel 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 El Puerto with a short position of FibraHotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Puerto and FibraHotel.
Diversification Opportunities for El Puerto and FibraHotel
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between LIVEPOL1 and FibraHotel is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding El Puerto de and FibraHotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibraHotel and El Puerto 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 El Puerto de are associated (or correlated) with FibraHotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibraHotel has no effect on the direction of El Puerto i.e., El Puerto and FibraHotel go up and down completely randomly.
Pair Corralation between El Puerto and FibraHotel
Assuming the 90 days trading horizon El Puerto de is expected to generate 0.76 times more return on investment than FibraHotel. However, El Puerto de is 1.32 times less risky than FibraHotel. It trades about 0.03 of its potential returns per unit of risk. FibraHotel is currently generating about -0.01 per unit of risk. If you would invest 9,511 in El Puerto de on September 4, 2024 and sell it today you would earn a total of 1,089 from holding El Puerto de or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.65% |
| Values | Daily Returns |
El Puerto de vs. FibraHotel
Performance |
| Timeline |
| El Puerto de |
| FibraHotel |
El Puerto and FibraHotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Puerto and FibraHotel
The main advantage of trading using opposite El Puerto and FibraHotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Puerto position performs unexpectedly, FibraHotel 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 FibraHotel will offset losses from the drop in FibraHotel's long position.| El Puerto vs. El Puerto de | El Puerto vs. Organizacin Soriana S | El Puerto vs. La Comer SAB | El Puerto vs. Companhia Brasileira de |
| FibraHotel vs. Delta Air Lines | FibraHotel vs. Martin Marietta Materials | FibraHotel vs. Micron Technology | FibraHotel vs. Grupo Hotelero Santa |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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