Correlation Between Techo Hogar and Catenon SA
Can any of the company-specific risk be diversified away by investing in both Techo Hogar and Catenon 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 Techo Hogar and Catenon SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techo Hogar SOCIMI, and Catenon SA, you can compare the effects of market volatilities on Techo Hogar and Catenon 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 Techo Hogar with a short position of Catenon SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techo Hogar and Catenon SA.
Diversification Opportunities for Techo Hogar and Catenon SA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Techo and Catenon is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Techo Hogar SOCIMI, and Catenon SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catenon SA and Techo Hogar 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 Techo Hogar SOCIMI, are associated (or correlated) with Catenon SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catenon SA has no effect on the direction of Techo Hogar i.e., Techo Hogar and Catenon SA go up and down completely randomly.
Pair Corralation between Techo Hogar and Catenon SA
Assuming the 90 days trading horizon Techo Hogar SOCIMI, is expected to generate 0.29 times more return on investment than Catenon SA. However, Techo Hogar SOCIMI, is 3.43 times less risky than Catenon SA. It trades about 0.08 of its potential returns per unit of risk. Catenon SA is currently generating about -0.19 per unit of risk. If you would invest 103.00 in Techo Hogar SOCIMI, on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Techo Hogar SOCIMI, or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Techo Hogar SOCIMI, vs. Catenon SA
Performance |
| Timeline |
| Techo Hogar SOCIMI, |
| Catenon SA |
Techo Hogar and Catenon SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techo Hogar and Catenon SA
The main advantage of trading using opposite Techo Hogar and Catenon SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techo Hogar position performs unexpectedly, Catenon 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 Catenon SA will offset losses from the drop in Catenon SA's long position.| Techo Hogar vs. Caixabank SA | Techo Hogar vs. Aedas Homes SL | Techo Hogar vs. Media Investment Optimization | Techo Hogar vs. Azaria Rental SOCIMI |
| Catenon SA vs. Media Investment Optimization | Catenon SA vs. Ebro Foods | Catenon SA vs. Inhome Prime Properties | Catenon SA vs. Plasticos Compuestos 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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