Correlation Between Fidere Patrimonio and Meridia Real
Can any of the company-specific risk be diversified away by investing in both Fidere Patrimonio and Meridia Real 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 Meridia Real 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 Meridia Real Estate, you can compare the effects of market volatilities on Fidere Patrimonio and Meridia Real 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 Meridia Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidere Patrimonio and Meridia Real.
Diversification Opportunities for Fidere Patrimonio and Meridia Real
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidere and Meridia is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fidere Patrimonio SOCIMI and Meridia Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridia Real Estate 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 Meridia Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridia Real Estate has no effect on the direction of Fidere Patrimonio i.e., Fidere Patrimonio and Meridia Real go up and down completely randomly.
Pair Corralation between Fidere Patrimonio and Meridia Real
Assuming the 90 days trading horizon Fidere Patrimonio SOCIMI is expected to under-perform the Meridia Real. But the stock apears to be less risky and, when comparing its historical volatility, Fidere Patrimonio SOCIMI is 1.6 times less risky than Meridia Real. The stock trades about -0.05 of its potential returns per unit of risk. The Meridia Real Estate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 79.00 in Meridia Real Estate on November 2, 2024 and sell it today you would earn a total of 9.00 from holding Meridia Real Estate or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidere Patrimonio SOCIMI vs. Meridia Real Estate
Performance |
| Timeline |
| Fidere Patrimonio SOCIMI |
| Meridia Real Estate |
Fidere Patrimonio and Meridia Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidere Patrimonio and Meridia Real
The main advantage of trading using opposite Fidere Patrimonio and Meridia Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidere Patrimonio position performs unexpectedly, Meridia Real 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 Meridia Real will offset losses from the drop in Meridia Real's long position.| Fidere Patrimonio vs. Bankinter | Fidere Patrimonio vs. Elaia Investment Spain | Fidere Patrimonio vs. Techo Hogar SOCIMI, | Fidere Patrimonio vs. Media Investment Optimization |
| Meridia Real vs. Vytrus Biotech SA | Meridia Real vs. Media Investment Optimization | Meridia Real vs. Technomeca Aerospace SA | Meridia Real vs. Caixabank SA |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |