Correlation Between 3M and FIBRA Storage
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By analyzing existing cross correlation between 3M Company and FIBRA Storage, you can compare the effects of market volatilities on 3M and FIBRA Storage 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 3M with a short position of FIBRA Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and FIBRA Storage.
Diversification Opportunities for 3M and FIBRA Storage
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 3M and FIBRA is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and FIBRA Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Storage and 3M 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 3M Company are associated (or correlated) with FIBRA Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Storage has no effect on the direction of 3M i.e., 3M and FIBRA Storage go up and down completely randomly.
Pair Corralation between 3M and FIBRA Storage
Assuming the 90 days trading horizon 3M Company is expected to generate 2.33 times more return on investment than FIBRA Storage. However, 3M is 2.33 times more volatile than FIBRA Storage. It trades about 0.07 of its potential returns per unit of risk. FIBRA Storage is currently generating about 0.03 per unit of risk. If you would invest 180,726 in 3M Company on September 20, 2024 and sell it today you would earn a total of 80,172 from holding 3M Company or generate 44.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
3M Company vs. FIBRA Storage
Performance |
| Timeline |
| 3M Company |
| FIBRA Storage |
3M and FIBRA Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and FIBRA Storage
The main advantage of trading using opposite 3M and FIBRA Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, FIBRA Storage 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 Storage will offset losses from the drop in FIBRA Storage's long position.| 3M vs. FIBRA Storage | 3M vs. Cognizant Technology Solutions | 3M vs. Monster Beverage Corp | 3M vs. Hoteles City Express |
| FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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