Correlation Between FIBRA Storage and Home Depot
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By analyzing existing cross correlation between FIBRA Storage and The Home Depot, you can compare the effects of market volatilities on FIBRA Storage and Home Depot 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 Home Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Home Depot.
Diversification Opportunities for FIBRA Storage and Home Depot
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIBRA and Home is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and The Home Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Depot 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 Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and Home Depot go up and down completely randomly.
Pair Corralation between FIBRA Storage and Home Depot
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 4.29 times less return on investment than Home Depot. But when comparing it to its historical volatility, FIBRA Storage is 1.38 times less risky than Home Depot. It trades about 0.02 of its potential returns per unit of risk. The Home Depot is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 560,116 in The Home Depot on November 1, 2024 and sell it today you would earn a total of 289,084 from holding The Home Depot or generate 51.61% 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. The Home Depot
Performance |
| Timeline |
| FIBRA Storage |
| Home Depot |
FIBRA Storage and Home Depot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Home Depot
The main advantage of trading using opposite FIBRA Storage and Home Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, Home Depot 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 Home Depot will offset losses from the drop in Home Depot's long position.| FIBRA Storage vs. Capital One Financial | FIBRA Storage vs. The Home Depot | FIBRA Storage vs. Grupo Sports World | FIBRA Storage vs. McEwen Mining |
| Home Depot vs. FibraHotel | Home Depot vs. Genworth Financial | Home Depot vs. GMxico Transportes SAB | Home Depot vs. McEwen Mining |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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