Correlation Between Helbor Empreendimentos and Gafisa SA
Can any of the company-specific risk be diversified away by investing in both Helbor Empreendimentos and Gafisa SA 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 Helbor Empreendimentos and Gafisa SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helbor Empreendimentos SA and Gafisa SA, you can compare the effects of market volatilities on Helbor Empreendimentos and Gafisa SA 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 Helbor Empreendimentos with a short position of Gafisa SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helbor Empreendimentos and Gafisa SA.
Diversification Opportunities for Helbor Empreendimentos and Gafisa SA
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Helbor and Gafisa is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Helbor Empreendimentos SA and Gafisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gafisa SA and Helbor Empreendimentos 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 Helbor Empreendimentos SA are associated (or correlated) with Gafisa SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gafisa SA has no effect on the direction of Helbor Empreendimentos i.e., Helbor Empreendimentos and Gafisa SA go up and down completely randomly.
Pair Corralation between Helbor Empreendimentos and Gafisa SA
Assuming the 90 days trading horizon Helbor Empreendimentos SA is expected to generate 0.6 times more return on investment than Gafisa SA. However, Helbor Empreendimentos SA is 1.65 times less risky than Gafisa SA. It trades about -0.1 of its potential returns per unit of risk. Gafisa SA is currently generating about -0.19 per unit of risk. If you would invest 240.00 in Helbor Empreendimentos SA on August 26, 2024 and sell it today you would lose (64.00) from holding Helbor Empreendimentos SA or give up 26.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helbor Empreendimentos SA vs. Gafisa SA
Performance |
| Timeline |
| Helbor Empreendimentos |
| Gafisa SA |
Helbor Empreendimentos and Gafisa SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helbor Empreendimentos and Gafisa SA
The main advantage of trading using opposite Helbor Empreendimentos and Gafisa SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helbor Empreendimentos position performs unexpectedly, Gafisa SA 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 Gafisa SA will offset losses from the drop in Gafisa SA's long position.| Helbor Empreendimentos vs. Tecnisa SA | Helbor Empreendimentos vs. Even Construtora e | Helbor Empreendimentos vs. JHSF Participaes SA | Helbor Empreendimentos vs. EZTEC Empreendimentos e |
| Gafisa SA vs. Cyrela Brazil Realty | Gafisa SA vs. Rossi Residencial SA | Gafisa SA vs. MRV Engenharia e | Gafisa SA vs. PDG Realty SA |
Check out your portfolio center.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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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