Correlation Between FIBRA Storage and Bank of Nova Scotia
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By analyzing existing cross correlation between FIBRA Storage and The Bank of, you can compare the effects of market volatilities on FIBRA Storage and Bank of Nova Scotia 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 FIBRA Storage with a short position of Bank of Nova Scotia. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Bank of Nova Scotia.
Diversification Opportunities for FIBRA Storage and Bank of Nova Scotia
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIBRA and Bank is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and The Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Nova Scotia and FIBRA Storage 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 FIBRA Storage are associated (or correlated) with Bank of Nova Scotia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Nova Scotia has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and Bank of Nova Scotia go up and down completely randomly.
Pair Corralation between FIBRA Storage and Bank of Nova Scotia
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 1.3 times less return on investment than Bank of Nova Scotia. But when comparing it to its historical volatility, FIBRA Storage is 1.14 times less risky than Bank of Nova Scotia. It trades about 0.14 of its potential returns per unit of risk. The Bank of is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 81,176 in The Bank of on November 3, 2024 and sell it today you would earn a total of 28,824 from holding The Bank of or generate 35.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. The Bank of
Performance |
| Timeline |
| FIBRA Storage |
| Bank of Nova Scotia |
FIBRA Storage and Bank of Nova Scotia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Bank of Nova Scotia
The main advantage of trading using opposite FIBRA Storage and Bank of Nova Scotia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, Bank of Nova Scotia 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 Bank of Nova Scotia will offset losses from the drop in Bank of Nova Scotia's long position.| FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
| Bank of Nova Scotia vs. UnitedHealth Group Incorporated | Bank of Nova Scotia vs. Grupo Hotelero Santa | Bank of Nova Scotia vs. Verizon Communications | Bank of Nova Scotia vs. CVS Health |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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