Correlation Between International Consolidated and Fidere Patrimonio

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

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

Diversification Opportunities for International Consolidated and Fidere Patrimonio

0.84

Correlation Coefficient

International Consolidated  Fidere Patrimonio

Very poor diversification

The 3 months correlation between International and Fidere is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air 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 International Consolidated 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 International Consolidated Airlines 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 International Consolidated i.e., International Consolidated and Fidere Patrimonio go up and down completely randomly.

Pair Corralation between International Consolidated and Fidere Patrimonio

Assuming the 90 days trading horizon International Consolidated Airlines is expected to generate 2.51 times more return on investment than Fidere Patrimonio. However, International Consolidated is 2.51 times more volatile than Fidere Patrimonio SOCIMI. It trades about 0.27 of its potential returns per unit of risk. Fidere Patrimonio SOCIMI is currently generating about 0.27 per unit of risk. If you would invest  306.00  in International Consolidated Airlines on April 25, 2025 and sell it today you would earn a total of  130.00  from holding International Consolidated Airlines or generate 42.48% return on investment over 90 days.

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

International Consolidated Air  vs.  Fidere Patrimonio SOCIMI

International Consolidated

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in International Consolidated Airlines are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, International Consolidated exhibited solid returns over the last few months and may actually be approaching a breakup point.

Fidere Patrimonio SOCIMI

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidere Patrimonio SOCIMI are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Fidere Patrimonio exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with International Consolidated and Fidere Patrimonio

The main advantage of trading using opposite International Consolidated and Fidere Patrimonio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated 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 International Consolidated Airlines 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.