Correlation Between Mapfre and Domo Activos
Can any of the company-specific risk be diversified away by investing in both Mapfre and Domo Activos 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 Mapfre and Domo Activos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapfre and Domo Activos Socimi, you can compare the effects of market volatilities on Mapfre and Domo Activos 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 Mapfre with a short position of Domo Activos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapfre and Domo Activos.
Diversification Opportunities for Mapfre and Domo Activos
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mapfre and Domo is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mapfre and Domo Activos Socimi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domo Activos Socimi and Mapfre 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 Mapfre are associated (or correlated) with Domo Activos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domo Activos Socimi has no effect on the direction of Mapfre i.e., Mapfre and Domo Activos go up and down completely randomly.
Pair Corralation between Mapfre and Domo Activos
If you would invest 128.00 in Domo Activos Socimi on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Domo Activos Socimi or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mapfre vs. Domo Activos Socimi
Performance |
| Timeline |
| Mapfre |
| Domo Activos Socimi |
Mapfre and Domo Activos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapfre and Domo Activos
The main advantage of trading using opposite Mapfre and Domo Activos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapfre position performs unexpectedly, Domo Activos 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 Domo Activos will offset losses from the drop in Domo Activos' long position.The idea behind Mapfre and Domo Activos Socimi 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.| Domo Activos vs. Fidere Patrimonio SOCIMI | Domo Activos vs. Metrovacesa SA | Domo Activos vs. Elecnor SA | Domo Activos vs. Mapfre |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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