Correlation Between FIBRA Storage and KB Home
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By analyzing existing cross correlation between FIBRA Storage and KB Home, you can compare the effects of market volatilities on FIBRA Storage and KB Home 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 KB Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and KB Home.
Diversification Opportunities for FIBRA Storage and KB Home
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIBRA and KBH is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and KB Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Home 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 KB Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Home has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and KB Home go up and down completely randomly.
Pair Corralation between FIBRA Storage and KB Home
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 0.53 times more return on investment than KB Home. However, FIBRA Storage is 1.9 times less risky than KB Home. It trades about 0.12 of its potential returns per unit of risk. KB Home is currently generating about -0.22 per unit of risk. If you would invest 1,715 in FIBRA Storage on August 27, 2024 and sell it today you would earn a total of 34.00 from holding FIBRA Storage or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
FIBRA Storage vs. KB Home
Performance |
| Timeline |
| FIBRA Storage |
| KB Home |
FIBRA Storage and KB Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and KB Home
The main advantage of trading using opposite FIBRA Storage and KB Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, KB Home 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 KB Home will offset losses from the drop in KB Home's long position.| FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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