Correlation Between FIBRA Storage and Steel Dynamics
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By analyzing existing cross correlation between FIBRA Storage and Steel Dynamics, you can compare the effects of market volatilities on FIBRA Storage and Steel Dynamics 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 Steel Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Steel Dynamics.
Diversification Opportunities for FIBRA Storage and Steel Dynamics
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIBRA and Steel is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and Steel Dynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Dynamics 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 Steel Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Dynamics has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and Steel Dynamics go up and down completely randomly.
Pair Corralation between FIBRA Storage and Steel Dynamics
If you would invest 1,714 in FIBRA Storage on September 13, 2024 and sell it today you would earn a total of 76.00 from holding FIBRA Storage or generate 4.43% 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. Steel Dynamics
Performance |
| Timeline |
| FIBRA Storage |
| Steel Dynamics |
FIBRA Storage and Steel Dynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Steel Dynamics
The main advantage of trading using opposite FIBRA Storage and Steel Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, Steel Dynamics 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 Steel Dynamics will offset losses from the drop in Steel Dynamics' long position.| FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
| Steel Dynamics vs. FIBRA Storage | Steel Dynamics vs. Cognizant Technology Solutions | Steel Dynamics vs. Southern Copper | Steel Dynamics vs. Hoteles City Express |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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