Correlation Between Companhia Habitasul and WHG REAL
Can any of the company-specific risk be diversified away by investing in both Companhia Habitasul and WHG REAL 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 Companhia Habitasul and WHG REAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Companhia Habitasul de and WHG REAL ESTATE, you can compare the effects of market volatilities on Companhia Habitasul and WHG REAL 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 Companhia Habitasul with a short position of WHG REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Companhia Habitasul and WHG REAL.
Diversification Opportunities for Companhia Habitasul and WHG REAL
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Companhia and WHG is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Companhia Habitasul de and WHG REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHG REAL ESTATE and Companhia Habitasul 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 Companhia Habitasul de are associated (or correlated) with WHG REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHG REAL ESTATE has no effect on the direction of Companhia Habitasul i.e., Companhia Habitasul and WHG REAL go up and down completely randomly.
Pair Corralation between Companhia Habitasul and WHG REAL
Assuming the 90 days trading horizon Companhia Habitasul de is expected to under-perform the WHG REAL. In addition to that, Companhia Habitasul is 4.16 times more volatile than WHG REAL ESTATE. It trades about -0.05 of its total potential returns per unit of risk. WHG REAL ESTATE is currently generating about -0.09 per unit of volatility. If you would invest 980.00 in WHG REAL ESTATE on September 5, 2024 and sell it today you would lose (86.00) from holding WHG REAL ESTATE or give up 8.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Companhia Habitasul de vs. WHG REAL ESTATE
Performance |
| Timeline |
| Companhia Habitasul |
| WHG REAL ESTATE |
Companhia Habitasul and WHG REAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Companhia Habitasul and WHG REAL
The main advantage of trading using opposite Companhia Habitasul and WHG REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Companhia Habitasul position performs unexpectedly, WHG REAL 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 WHG REAL will offset losses from the drop in WHG REAL's long position.| Companhia Habitasul vs. Hotis Othon SA | Companhia Habitasul vs. Hrcules SA | Companhia Habitasul vs. Eucatex SA Indstria | Companhia Habitasul vs. BTG Pactual Logstica |
| WHG REAL vs. Energisa SA | WHG REAL vs. BTG Pactual Logstica | WHG REAL vs. Plano Plano Desenvolvimento | WHG REAL vs. Companhia Habitasul de |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |