Correlation Between Mastercard Incorporated and Fibra Plus
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By analyzing existing cross correlation between Mastercard Incorporated and Fibra Plus, you can compare the effects of market volatilities on Mastercard Incorporated 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 Mastercard Incorporated with a short position of Fibra Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard Incorporated and Fibra Plus.
Diversification Opportunities for Mastercard Incorporated and Fibra Plus
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mastercard and Fibra is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard Incorporated and Fibra Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra Plus and Mastercard Incorporated 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 Mastercard Incorporated 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 Mastercard Incorporated i.e., Mastercard Incorporated and Fibra Plus go up and down completely randomly.
Pair Corralation between Mastercard Incorporated and Fibra Plus
Assuming the 90 days horizon Mastercard Incorporated is expected to generate 1.88 times more return on investment than Fibra Plus. However, Mastercard Incorporated is 1.88 times more volatile than Fibra Plus. It trades about 0.19 of its potential returns per unit of risk. Fibra Plus is currently generating about -0.03 per unit of risk. If you would invest 1,019,961 in Mastercard Incorporated on August 30, 2024 and sell it today you would earn a total of 72,725 from holding Mastercard Incorporated or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mastercard Incorporated vs. Fibra Plus
Performance |
| Timeline |
| Mastercard Incorporated |
| Fibra Plus |
Mastercard Incorporated and Fibra Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard Incorporated and Fibra Plus
The main advantage of trading using opposite Mastercard Incorporated and Fibra Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard Incorporated 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.The idea behind Mastercard Incorporated and Fibra Plus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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