Correlation Between Metrovacesa and Fidere Patrimonio
Can any of the company-specific risk be diversified away by investing in both Metrovacesa 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 Metrovacesa and Fidere Patrimonio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metrovacesa SA and Fidere Patrimonio SOCIMI, you can compare the effects of market volatilities on Metrovacesa 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 Metrovacesa with a short position of Fidere Patrimonio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrovacesa and Fidere Patrimonio.
Diversification Opportunities for Metrovacesa and Fidere Patrimonio
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Metrovacesa and Fidere is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Metrovacesa SA 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 Metrovacesa 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 Metrovacesa SA 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 Metrovacesa i.e., Metrovacesa and Fidere Patrimonio go up and down completely randomly.
Pair Corralation between Metrovacesa and Fidere Patrimonio
If you would invest 851.00 in Metrovacesa SA on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Metrovacesa SA or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metrovacesa SA vs. Fidere Patrimonio SOCIMI
Performance |
| Timeline |
| Metrovacesa SA |
| Fidere Patrimonio SOCIMI |
Metrovacesa and Fidere Patrimonio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrovacesa and Fidere Patrimonio
The main advantage of trading using opposite Metrovacesa and Fidere Patrimonio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrovacesa 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.| Metrovacesa vs. NH Hoteles | Metrovacesa vs. Fomento de Construcciones | Metrovacesa vs. Inmobiliaria Colonial SA | Metrovacesa vs. Indra A |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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