Correlation Between Squirrel Media and Techo Hogar
Can any of the company-specific risk be diversified away by investing in both Squirrel Media 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 Squirrel Media and Techo Hogar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and Techo Hogar SOCIMI,, you can compare the effects of market volatilities on Squirrel Media 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 Squirrel Media with a short position of Techo Hogar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Techo Hogar.
Diversification Opportunities for Squirrel Media and Techo Hogar
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Squirrel and Techo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA 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 Squirrel Media 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 Squirrel Media SA 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 Squirrel Media i.e., Squirrel Media and Techo Hogar go up and down completely randomly.
Pair Corralation between Squirrel Media and Techo Hogar
Assuming the 90 days trading horizon Squirrel Media SA is expected to under-perform the Techo Hogar. In addition to that, Squirrel Media is 9.31 times more volatile than Techo Hogar SOCIMI,. It trades about -0.02 of its total potential returns per unit of risk. Techo Hogar SOCIMI, is currently generating about 0.02 per unit of volatility. If you would invest 102.00 in Techo Hogar SOCIMI, on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Techo Hogar SOCIMI, or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 71.23% |
| Values | Daily Returns |
Squirrel Media SA vs. Techo Hogar SOCIMI,
Performance |
| Timeline |
| Squirrel Media SA |
| Techo Hogar SOCIMI, |
Squirrel Media and Techo Hogar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and Techo Hogar
The main advantage of trading using opposite Squirrel Media and Techo Hogar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media 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.| Squirrel Media vs. Tier1 Technology SA | Squirrel Media vs. Neinor Homes SLU | Squirrel Media vs. NH Hoteles | Squirrel Media vs. Elaia Investment Spain |
| Techo Hogar vs. Arteche Lantegi Elkartea | Techo Hogar vs. Neinor Homes SLU | Techo Hogar vs. Squirrel Media SA | Techo Hogar vs. International Consolidated Airlines |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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