Correlation Between FIBRA Storage and Grupo Financiero
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By analyzing existing cross correlation between FIBRA Storage and Grupo Financiero Banorte, you can compare the effects of market volatilities on FIBRA Storage and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Grupo Financiero.
Diversification Opportunities for FIBRA Storage and Grupo Financiero
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FIBRA and Grupo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and Grupo Financiero Banorte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Banorte 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Banorte has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and Grupo Financiero go up and down completely randomly.
Pair Corralation between FIBRA Storage and Grupo Financiero
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 1.87 times less return on investment than Grupo Financiero. But when comparing it to its historical volatility, FIBRA Storage is 1.8 times less risky than Grupo Financiero. It trades about 0.02 of its potential returns per unit of risk. Grupo Financiero Banorte is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 12,630 in Grupo Financiero Banorte on September 14, 2024 and sell it today you would earn a total of 1,370 from holding Grupo Financiero Banorte or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. Grupo Financiero Banorte
Performance |
| Timeline |
| FIBRA Storage |
| Grupo Financiero Banorte |
FIBRA Storage and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Grupo Financiero
The main advantage of trading using opposite FIBRA Storage and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.| FIBRA Storage vs. Grupo Sports World | FIBRA Storage vs. Costco Wholesale | FIBRA Storage vs. DXC Technology | FIBRA Storage vs. FibraHotel |
| Grupo Financiero vs. FIBRA Storage | Grupo Financiero vs. Grupo Hotelero Santa | Grupo Financiero vs. Monster Beverage Corp | Grupo Financiero vs. Grupo Sports World |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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