Correlation Between FIBRA Storage and Merck
Specify exactly 2 symbols:
By analyzing existing cross correlation between FIBRA Storage and Merck Company, you can compare the effects of market volatilities on FIBRA Storage and Merck 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 Merck. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Merck.
Diversification Opportunities for FIBRA Storage and Merck
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FIBRA and Merck is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and Merck Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merck 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 Merck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merck Company has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and Merck go up and down completely randomly.
Pair Corralation between FIBRA Storage and Merck
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 0.51 times more return on investment than Merck. However, FIBRA Storage is 1.98 times less risky than Merck. It trades about 0.17 of its potential returns per unit of risk. Merck Company is currently generating about 0.02 per unit of risk. If you would invest 1,720 in FIBRA Storage on August 31, 2024 and sell it today you would earn a total of 55.00 from holding FIBRA Storage or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. Merck Company
Performance |
| Timeline |
| FIBRA Storage |
| Merck Company |
FIBRA Storage and Merck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Merck
The main advantage of trading using opposite FIBRA Storage and Merck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, Merck 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 Merck will offset losses from the drop in Merck's long position.| FIBRA Storage vs. Prudential Financial | FIBRA Storage vs. Monster Beverage Corp | FIBRA Storage vs. New Oriental Education | FIBRA Storage vs. Micron Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |