Correlation Between General De and Fidere Patrimonio

Can any of the company-specific risk be diversified away by investing in both General De and Fidere Patrimonio 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 General De and Fidere Patrimonio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between General de Alquiler and Fidere Patrimonio SOCIMI, you can compare the effects of market volatilities on General De and Fidere Patrimonio 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 General De with a short position of Fidere Patrimonio. Check out your portfolio center. Please also check ongoing floating volatility patterns of General De and Fidere Patrimonio.

Diversification Opportunities for General De and Fidere Patrimonio

-0.55

Correlation Coefficient

General De  Fidere Patrimonio

Excellent diversification

The 3 months correlation between General and Fidere is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding General de Alquiler and Fidere Patrimonio SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidere Patrimonio SOCIMI and General De 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 General de Alquiler are associated (or correlated) with Fidere Patrimonio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidere Patrimonio SOCIMI has no effect on the direction of General De i.e., General De and Fidere Patrimonio go up and down completely randomly.

Pair Corralation between General De and Fidere Patrimonio

Assuming the 90 days trading horizon General de Alquiler is expected to generate 0.59 times more return on investment than Fidere Patrimonio. However, General de Alquiler is 1.7 times less risky than Fidere Patrimonio. It trades about 0.08 of its potential returns per unit of risk. Fidere Patrimonio SOCIMI is currently generating about -0.12 per unit of risk. If you would invest  122.00  in General de Alquiler on September 13, 2024 and sell it today you would earn a total of  12.00  from holding General de Alquiler or generate 9.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

General de Alquiler  vs.  Fidere Patrimonio SOCIMI

General de Alquiler

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in General de Alquiler are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, General De may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Fidere Patrimonio SOCIMI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidere Patrimonio SOCIMI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with General De and Fidere Patrimonio

The main advantage of trading using opposite General De and Fidere Patrimonio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General De position performs unexpectedly, Fidere Patrimonio 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 Fidere Patrimonio will offset losses from the drop in Fidere Patrimonio's long position.

The idea behind General de Alquiler and Fidere Patrimonio SOCIMI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to 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.