Correlation Between International Consolidated and Techo Hogar
Can any of the company-specific risk be diversified away by investing in both International Consolidated and Techo Hogar 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 Techo Hogar 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 Techo Hogar SOCIMI,, you can compare the effects of market volatilities on International Consolidated and Techo Hogar 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 Techo Hogar. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and Techo Hogar.
Diversification Opportunities for International Consolidated and Techo Hogar
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Techo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air and Techo Hogar SOCIMI, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techo Hogar 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 Techo Hogar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techo Hogar SOCIMI, has no effect on the direction of International Consolidated i.e., International Consolidated and Techo Hogar go up and down completely randomly.
Pair Corralation between International Consolidated and Techo Hogar
Assuming the 90 days trading horizon International Consolidated Airlines is expected to generate 10.13 times more return on investment than Techo Hogar. However, International Consolidated is 10.13 times more volatile than Techo Hogar SOCIMI,. It trades about 0.32 of its potential returns per unit of risk. Techo Hogar SOCIMI, is currently generating about -0.21 per unit of risk. If you would invest 257.00 in International Consolidated Airlines on August 25, 2024 and sell it today you would earn a total of 39.00 from holding International Consolidated Airlines or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Consolidated Air vs. Techo Hogar SOCIMI,
Performance |
| Timeline |
| International Consolidated |
| Techo Hogar SOCIMI, |
International Consolidated and Techo Hogar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and Techo Hogar
The main advantage of trading using opposite International Consolidated and Techo Hogar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated position performs unexpectedly, Techo Hogar 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 Techo Hogar will offset losses from the drop in Techo Hogar's long position.| International Consolidated vs. Metrovacesa SA | International Consolidated vs. Elecnor SA | International Consolidated vs. Mapfre | International Consolidated vs. Amper SA |
| Techo Hogar vs. Airbus Group SE | Techo Hogar vs. Industria de Diseno | Techo Hogar vs. Iberdrola SA | Techo Hogar vs. Petroleo Brasileiro 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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