Correlation Between Corporativo GBM and FIBRA Storage

Can any of the company-specific risk be diversified away by investing in both Corporativo GBM and FIBRA Storage 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 Corporativo GBM and FIBRA Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Corporativo GBM SAB and FIBRA Storage, you can compare the effects of market volatilities on Corporativo GBM and FIBRA Storage 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 Corporativo GBM with a short position of FIBRA Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporativo GBM and FIBRA Storage.

Diversification Opportunities for Corporativo GBM and FIBRA Storage

-0.82

Correlation Coefficient

Corporativo GBM  FIBRA Storage

Pay attention - limited upside

The 3 months correlation between Corporativo and FIBRA is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Corporativo GBM SAB and FIBRA Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Storage and Corporativo GBM 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 Corporativo GBM SAB are associated (or correlated) with FIBRA Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Storage has no effect on the direction of Corporativo GBM i.e., Corporativo GBM and FIBRA Storage go up and down completely randomly.

Pair Corralation between Corporativo GBM and FIBRA Storage

Assuming the 90 days trading horizon Corporativo GBM SAB is expected to under-perform the FIBRA Storage. In addition to that, Corporativo GBM is 1.96 times more volatile than FIBRA Storage. It trades about -0.4 of its total potential returns per unit of risk. FIBRA Storage is currently generating about 0.3 per unit of volatility. If you would invest  1,615  in FIBRA Storage on September 29, 2024 and sell it today you would earn a total of  185.00  from holding FIBRA Storage or generate 11.46% return on investment over 90 days.

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

Corporativo GBM SAB  vs.  FIBRA Storage

Corporativo GBM SAB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Corporativo GBM SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

FIBRA Storage

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FIBRA Storage are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, FIBRA Storage may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Corporativo GBM and FIBRA Storage

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

The idea behind Corporativo GBM SAB and FIBRA Storage 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.