Correlation Between Tecnisa SA and General Shopping
Can any of the company-specific risk be diversified away by investing in both Tecnisa SA and General Shopping 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 Tecnisa SA and General Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecnisa SA and General Shopping e, you can compare the effects of market volatilities on Tecnisa SA and General Shopping 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 Tecnisa SA with a short position of General Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecnisa SA and General Shopping.
Diversification Opportunities for Tecnisa SA and General Shopping
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tecnisa and General is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tecnisa SA and General Shopping e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Shopping e and Tecnisa SA 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 Tecnisa SA are associated (or correlated) with General Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Shopping e has no effect on the direction of Tecnisa SA i.e., Tecnisa SA and General Shopping go up and down completely randomly.
Pair Corralation between Tecnisa SA and General Shopping
If you would invest 600.00 in General Shopping e on November 29, 2024 and sell it today you would earn a total of 0.00 from holding General Shopping e or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tecnisa SA vs. General Shopping e
Performance |
| Timeline |
| Tecnisa SA |
| General Shopping e |
Tecnisa SA and General Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecnisa SA and General Shopping
The main advantage of trading using opposite Tecnisa SA and General Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecnisa SA position performs unexpectedly, General Shopping 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 General Shopping will offset losses from the drop in General Shopping's long position.| Tecnisa SA vs. Helbor Empreendimentos SA | Tecnisa SA vs. Gafisa SA | Tecnisa SA vs. JHSF Participaes SA | Tecnisa SA vs. Even Construtora e |
| General Shopping vs. STAG Industrial, | General Shopping vs. Metalrgica Riosulense SA | General Shopping vs. Universal Health Services, | General Shopping vs. Nordon Indstrias Metalrgicas |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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