Correlation Between FIBRA Storage and Microsoft
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By analyzing existing cross correlation between FIBRA Storage and Microsoft, you can compare the effects of market volatilities on FIBRA Storage and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Microsoft.
Diversification Opportunities for FIBRA Storage and Microsoft
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIBRA and Microsoft is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and Microsoft go up and down completely randomly.
Pair Corralation between FIBRA Storage and Microsoft
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 1.9 times less return on investment than Microsoft. But when comparing it to its historical volatility, FIBRA Storage is 1.89 times less risky than Microsoft. It trades about 0.15 of its potential returns per unit of risk. Microsoft is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 815,686 in Microsoft on September 1, 2024 and sell it today you would earn a total of 44,314 from holding Microsoft or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. Microsoft
Performance |
| Timeline |
| FIBRA Storage |
| Microsoft |
FIBRA Storage and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Microsoft
The main advantage of trading using opposite FIBRA Storage and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
| Microsoft vs. FIBRA Storage | Microsoft vs. Grupo Carso SAB | Microsoft vs. Samsung Electronics Co | Microsoft vs. FibraHotel |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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