Correlation Between Fidere Patrimonio and Azaria Rental

Can any of the company-specific risk be diversified away by investing in both Fidere Patrimonio and Azaria Rental 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 Azaria Rental 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 Azaria Rental SOCIMI, you can compare the effects of market volatilities on Fidere Patrimonio and Azaria Rental 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 Azaria Rental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidere Patrimonio and Azaria Rental.

Diversification Opportunities for Fidere Patrimonio and Azaria Rental

0.08

Correlation Coefficient

Fidere Patrimonio  Azaria Rental

Significant diversification

The 3 months correlation between Fidere and Azaria is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fidere Patrimonio SOCIMI and Azaria Rental SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azaria Rental 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 Azaria Rental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azaria Rental SOCIMI has no effect on the direction of Fidere Patrimonio i.e., Fidere Patrimonio and Azaria Rental go up and down completely randomly.

Pair Corralation between Fidere Patrimonio and Azaria Rental

Assuming the 90 days trading horizon Fidere Patrimonio SOCIMI is expected to under-perform the Azaria Rental. In addition to that, Fidere Patrimonio is 7.87 times more volatile than Azaria Rental SOCIMI. It trades about -0.12 of its total potential returns per unit of risk. Azaria Rental SOCIMI is currently generating about -0.12 per unit of volatility. If you would invest  870.00  in Azaria Rental SOCIMI on September 15, 2024 and sell it today you would lose (30.00) from holding Azaria Rental SOCIMI or give up 3.45% of portfolio value over 90 days.

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

Fidere Patrimonio SOCIMI  vs.  Azaria Rental SOCIMI

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.

Azaria Rental SOCIMI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Azaria Rental SOCIMI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Azaria Rental is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Fidere Patrimonio and Azaria Rental

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

The idea behind Fidere Patrimonio SOCIMI and Azaria Rental 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.