Correlation Between LXP Industrial and Fibra Terrafina
Can any of the company-specific risk be diversified away by investing in both LXP Industrial and Fibra Terrafina 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 LXP Industrial and Fibra Terrafina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LXP Industrial Trust and Fibra Terrafina, you can compare the effects of market volatilities on LXP Industrial and Fibra Terrafina 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 LXP Industrial with a short position of Fibra Terrafina. Check out your portfolio center. Please also check ongoing floating volatility patterns of LXP Industrial and Fibra Terrafina.
Diversification Opportunities for LXP Industrial and Fibra Terrafina
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between LXP and Fibra is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding LXP Industrial Trust and Fibra Terrafina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra Terrafina and LXP Industrial 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 LXP Industrial Trust are associated (or correlated) with Fibra Terrafina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibra Terrafina has no effect on the direction of LXP Industrial i.e., LXP Industrial and Fibra Terrafina go up and down completely randomly.
Pair Corralation between LXP Industrial and Fibra Terrafina
Considering the 90-day investment horizon LXP Industrial Trust is expected to generate 0.43 times more return on investment than Fibra Terrafina. However, LXP Industrial Trust is 2.35 times less risky than Fibra Terrafina. It trades about 0.07 of its potential returns per unit of risk. Fibra Terrafina is currently generating about -0.02 per unit of risk. If you would invest 843.00 in LXP Industrial Trust on September 3, 2024 and sell it today you would earn a total of 92.00 from holding LXP Industrial Trust or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
LXP Industrial Trust vs. Fibra Terrafina
Performance |
| Timeline |
| LXP Industrial Trust |
| Fibra Terrafina |
LXP Industrial and Fibra Terrafina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LXP Industrial and Fibra Terrafina
The main advantage of trading using opposite LXP Industrial and Fibra Terrafina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LXP Industrial position performs unexpectedly, Fibra Terrafina 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 Terrafina will offset losses from the drop in Fibra Terrafina's long position.| LXP Industrial vs. SCOR PK | LXP Industrial vs. Aquagold International | LXP Industrial vs. SPACE | LXP Industrial vs. T Rowe Price |
| Fibra Terrafina vs. Big Yellow Group | Fibra Terrafina vs. Plymouth Industrial REIT | Fibra Terrafina vs. LXP Industrial Trust | Fibra Terrafina vs. Terreno Realty |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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