Correlation Between Mapfre and Fidere Patrimonio

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Mapfre  vs.  Fidere Patrimonio SOCIMI

 Performance 
       Timeline  
Mapfre 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Mapfre are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Mapfre may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Fidere Patrimonio SOCIMI 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fidere Patrimonio SOCIMI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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.
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.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators