Correlation Between GameStop Corp and FIBRA Storage

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

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

Diversification Opportunities for GameStop Corp and FIBRA Storage

-0.58

Correlation Coefficient

GameStop Corp  FIBRA Storage

Excellent diversification

The 3 months correlation between GameStop and FIBRA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and FIBRA Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Storage and GameStop Corp 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 GameStop Corp 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 GameStop Corp i.e., GameStop Corp and FIBRA Storage go up and down completely randomly.

Pair Corralation between GameStop Corp and FIBRA Storage

Assuming the 90 days trading horizon GameStop Corp is expected to under-perform the FIBRA Storage. In addition to that, GameStop Corp is 7.26 times more volatile than FIBRA Storage. It trades about -0.06 of its total potential returns per unit of risk. FIBRA Storage is currently generating about 0.17 per unit of volatility. If you would invest  2,027  in FIBRA Storage on April 25, 2025 and sell it today you would earn a total of  123.00  from holding FIBRA Storage or generate 6.07% return on investment over 90 days.

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

GameStop Corp  vs.  FIBRA Storage

GameStop Corp

Risk-Adjusted Performance

Very Weak

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

FIBRA Storage

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FIBRA Storage are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, FIBRA Storage is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GameStop Corp and FIBRA Storage

The main advantage of trading using opposite GameStop Corp and FIBRA Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp 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 GameStop Corp 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..