Correlation Between Prologis and FIBRA Macquarie
Can any of the company-specific risk be diversified away by investing in both Prologis and FIBRA Macquarie 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 Prologis and FIBRA Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prologis and FIBRA Macquarie Mxico, you can compare the effects of market volatilities on Prologis and FIBRA Macquarie 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 Prologis with a short position of FIBRA Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prologis and FIBRA Macquarie.
Diversification Opportunities for Prologis and FIBRA Macquarie
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Prologis and FIBRA is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Prologis and FIBRA Macquarie Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Macquarie Mxico and Prologis 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 Prologis are associated (or correlated) with FIBRA Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Macquarie Mxico has no effect on the direction of Prologis i.e., Prologis and FIBRA Macquarie go up and down completely randomly.
Pair Corralation between Prologis and FIBRA Macquarie
Considering the 90-day investment horizon Prologis is expected to generate 0.31 times more return on investment than FIBRA Macquarie. However, Prologis is 3.19 times less risky than FIBRA Macquarie. It trades about 0.25 of its potential returns per unit of risk. FIBRA Macquarie Mxico is currently generating about 0.04 per unit of risk. If you would invest 10,510 in Prologis on November 30, 2024 and sell it today you would earn a total of 1,882 from holding Prologis or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prologis vs. FIBRA Macquarie Mxico
Performance |
| Timeline |
| Prologis |
| FIBRA Macquarie Mxico |
Prologis and FIBRA Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prologis and FIBRA Macquarie
The main advantage of trading using opposite Prologis and FIBRA Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prologis position performs unexpectedly, FIBRA Macquarie 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 Macquarie will offset losses from the drop in FIBRA Macquarie's long position.| Prologis vs. Extra Space Storage | Prologis vs. CubeSmart | Prologis vs. STAG Industrial | Prologis vs. Innovative Industrial Properties |
| FIBRA Macquarie vs. Industrial Logistics Properties | FIBRA Macquarie vs. Safestore Holdings plc | FIBRA Macquarie vs. Plymouth Industrial REIT | FIBRA Macquarie vs. Terreno Realty |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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