Correlation Between FIBRA Storage and McDonalds
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By analyzing existing cross correlation between FIBRA Storage and McDonalds, you can compare the effects of market volatilities on FIBRA Storage and McDonalds 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 McDonalds. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and McDonalds.
Diversification Opportunities for FIBRA Storage and McDonalds
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIBRA and McDonalds is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and McDonalds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McDonalds 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 McDonalds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McDonalds has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and McDonalds go up and down completely randomly.
Pair Corralation between FIBRA Storage and McDonalds
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 0.64 times more return on investment than McDonalds. However, FIBRA Storage is 1.56 times less risky than McDonalds. It trades about 0.18 of its potential returns per unit of risk. McDonalds is currently generating about 0.06 per unit of risk. If you would invest 1,730 in FIBRA Storage on September 4, 2024 and sell it today you would earn a total of 60.00 from holding FIBRA Storage or generate 3.47% 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. McDonalds
Performance |
| Timeline |
| FIBRA Storage |
| McDonalds |
FIBRA Storage and McDonalds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and McDonalds
The main advantage of trading using opposite FIBRA Storage and McDonalds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, McDonalds 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 McDonalds will offset losses from the drop in McDonalds' long position.| FIBRA Storage vs. Verizon Communications | FIBRA Storage vs. DXC Technology | FIBRA Storage vs. First Majestic Silver | FIBRA Storage vs. CVS Health |
| McDonalds vs. KB Home | McDonalds vs. Grupo Sports World | McDonalds vs. Monster Beverage Corp | McDonalds vs. FIBRA Storage |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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