Correlation Between Ross Stores and FibraHotel
Can any of the company-specific risk be diversified away by investing in both Ross Stores and FibraHotel 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 Ross Stores and FibraHotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ross Stores and FibraHotel, you can compare the effects of market volatilities on Ross Stores and FibraHotel 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 Ross Stores with a short position of FibraHotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and FibraHotel.
Diversification Opportunities for Ross Stores and FibraHotel
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ross and FibraHotel is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and FibraHotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibraHotel and Ross Stores 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 Ross Stores are associated (or correlated) with FibraHotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibraHotel has no effect on the direction of Ross Stores i.e., Ross Stores and FibraHotel go up and down completely randomly.
Pair Corralation between Ross Stores and FibraHotel
Assuming the 90 days trading horizon Ross Stores is expected to generate 1.32 times more return on investment than FibraHotel. However, Ross Stores is 1.32 times more volatile than FibraHotel. It trades about 0.15 of its potential returns per unit of risk. FibraHotel is currently generating about -0.01 per unit of risk. If you would invest 193,559 in Ross Stores on August 26, 2024 and sell it today you would earn a total of 104,571 from holding Ross Stores or generate 54.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.74% |
| Values | Daily Returns |
Ross Stores vs. FibraHotel
Performance |
| Timeline |
| Ross Stores |
| FibraHotel |
Ross Stores and FibraHotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ross Stores and FibraHotel
The main advantage of trading using opposite Ross Stores and FibraHotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ross Stores position performs unexpectedly, FibraHotel 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 FibraHotel will offset losses from the drop in FibraHotel's long position.| Ross Stores vs. Glencore plc | Ross Stores vs. iShares Trust | Ross Stores vs. US Bancorp | Ross Stores vs. American Express |
| FibraHotel vs. Promotora y Operadora | FibraHotel vs. Megacable Holdings S | FibraHotel vs. ALPEK SAB de | FibraHotel vs. Gentera SAB de |
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
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |