Correlation Between Fidere Patrimonio and Domo Activos
Can any of the company-specific risk be diversified away by investing in both Fidere Patrimonio and Domo Activos at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fidere Patrimonio and Domo Activos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidere Patrimonio SOCIMI and Domo Activos Socimi, you can compare the effects of market volatilities on Fidere Patrimonio and Domo Activos 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 Fidere Patrimonio with a short position of Domo Activos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidere Patrimonio and Domo Activos.
Diversification Opportunities for Fidere Patrimonio and Domo Activos
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidere and Domo is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fidere Patrimonio SOCIMI and Domo Activos Socimi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domo Activos Socimi and Fidere Patrimonio 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 Fidere Patrimonio SOCIMI are associated (or correlated) with Domo Activos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domo Activos Socimi has no effect on the direction of Fidere Patrimonio i.e., Fidere Patrimonio and Domo Activos go up and down completely randomly.
Pair Corralation between Fidere Patrimonio and Domo Activos
Assuming the 90 days trading horizon Fidere Patrimonio SOCIMI is expected to generate 0.74 times more return on investment than Domo Activos. However, Fidere Patrimonio SOCIMI is 1.35 times less risky than Domo Activos. It trades about -0.05 of its potential returns per unit of risk. Domo Activos Socimi is currently generating about -0.04 per unit of risk. If you would invest 4,200 in Fidere Patrimonio SOCIMI on August 29, 2024 and sell it today you would lose (1,140) from holding Fidere Patrimonio SOCIMI or give up 27.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 49.13% |
| Values | Daily Returns |
Fidere Patrimonio SOCIMI vs. Domo Activos Socimi
Performance |
| Timeline |
| Fidere Patrimonio SOCIMI |
| Domo Activos Socimi |
Fidere Patrimonio and Domo Activos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidere Patrimonio and Domo Activos
The main advantage of trading using opposite Fidere Patrimonio and Domo Activos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidere Patrimonio position performs unexpectedly, Domo Activos 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 Domo Activos will offset losses from the drop in Domo Activos' long position.| Fidere Patrimonio vs. Metrovacesa SA | Fidere Patrimonio vs. Elecnor SA | Fidere Patrimonio vs. Mapfre | Fidere Patrimonio vs. Tander Inversiones SOCIMI |
| Domo Activos vs. Metrovacesa SA | Domo Activos vs. Elecnor SA | Domo Activos vs. Mapfre | Domo Activos vs. Tander Inversiones SOCIMI |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |