Correlation Between Mapfre and Fidere Patrimonio
Can any of the company-specific risk be diversified away by investing in both Mapfre and Fidere Patrimonio 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 Fidere Patrimonio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapfre and Fidere Patrimonio SOCIMI, you can compare the effects of market volatilities on Mapfre and Fidere Patrimonio 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 Fidere Patrimonio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapfre and Fidere Patrimonio.
Diversification Opportunities for Mapfre and Fidere Patrimonio
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mapfre and Fidere is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mapfre and Fidere Patrimonio SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidere Patrimonio 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 Fidere Patrimonio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidere Patrimonio SOCIMI has no effect on the direction of Mapfre i.e., Mapfre and Fidere Patrimonio go up and down completely randomly.
Pair Corralation between Mapfre and Fidere Patrimonio
If you would invest 3,060 in Fidere Patrimonio SOCIMI on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Fidere Patrimonio SOCIMI or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Mapfre vs. Fidere Patrimonio SOCIMI
Performance |
Timeline |
Mapfre |
Fidere Patrimonio SOCIMI |
Mapfre and Fidere Patrimonio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mapfre and Fidere Patrimonio
The main advantage of trading using opposite Mapfre and Fidere Patrimonio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapfre position performs unexpectedly, Fidere Patrimonio 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 Fidere Patrimonio will offset losses from the drop in Fidere Patrimonio's long position.The idea behind Mapfre and Fidere Patrimonio 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.Fidere Patrimonio vs. Arteche Lantegi Elkartea | Fidere Patrimonio vs. Borges Agricultural Industrial | Fidere Patrimonio vs. Inhome Prime Properties | Fidere Patrimonio vs. Naturhouse Health SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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