Correlation Between FIBRA Storage and 3M
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By analyzing existing cross correlation between FIBRA Storage and 3M Company, you can compare the effects of market volatilities on FIBRA Storage and 3M 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 3M. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and 3M.
Diversification Opportunities for FIBRA Storage and 3M
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FIBRA and 3M is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and 3M Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M Company 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 3M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M Company has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and 3M go up and down completely randomly.
Pair Corralation between FIBRA Storage and 3M
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 0.35 times more return on investment than 3M. However, FIBRA Storage is 2.88 times less risky than 3M. It trades about 0.33 of its potential returns per unit of risk. 3M Company is currently generating about -0.01 per unit of risk. If you would invest 1,720 in FIBRA Storage on September 21, 2024 and sell it today you would earn a total of 64.00 from holding FIBRA Storage or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. 3M Company
Performance |
| Timeline |
| FIBRA Storage |
| 3M Company |
FIBRA Storage and 3M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and 3M
The main advantage of trading using opposite FIBRA Storage and 3M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, 3M 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 3M will offset losses from the drop in 3M's long position.| FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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