Correlation Between FIBRA Storage and United States
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By analyzing existing cross correlation between FIBRA Storage and United States Steel, you can compare the effects of market volatilities on FIBRA Storage and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and United States.
Diversification Opportunities for FIBRA Storage and United States
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIBRA and United is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and United States go up and down completely randomly.
Pair Corralation between FIBRA Storage and United States
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 5.68 times less return on investment than United States. But when comparing it to its historical volatility, FIBRA Storage is 4.32 times less risky than United States. It trades about 0.12 of its potential returns per unit of risk. United States Steel is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 76,568 in United States Steel on August 28, 2024 and sell it today you would earn a total of 8,212 from holding United States Steel or generate 10.73% 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. United States Steel
Performance |
| Timeline |
| FIBRA Storage |
| United States Steel |
FIBRA Storage and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and United States
The main advantage of trading using opposite FIBRA Storage and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| FIBRA Storage vs. Genworth Financial | FIBRA Storage vs. Verizon Communications | FIBRA Storage vs. GMxico Transportes SAB | FIBRA Storage vs. Lloyds Banking Group |
| United States vs. The Select Sector | United States vs. Promotora y Operadora | United States vs. iShares Global Timber | United States vs. SPDR Series Trust |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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