Correlation Between Techo Hogar and Asturiana
Can any of the company-specific risk be diversified away by investing in both Techo Hogar and Asturiana 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 Asturiana 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 Asturiana de Laminados, you can compare the effects of market volatilities on Techo Hogar and Asturiana 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 Asturiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techo Hogar and Asturiana.
Diversification Opportunities for Techo Hogar and Asturiana
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Techo and Asturiana is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Techo Hogar SOCIMI, and Asturiana de Laminados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asturiana de Laminados 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 Asturiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asturiana de Laminados has no effect on the direction of Techo Hogar i.e., Techo Hogar and Asturiana go up and down completely randomly.
Pair Corralation between Techo Hogar and Asturiana
If you would invest 104.00 in Techo Hogar SOCIMI, on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Techo Hogar SOCIMI, or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techo Hogar SOCIMI, vs. Asturiana de Laminados
Performance |
| Timeline |
| Techo Hogar SOCIMI, |
| Asturiana de Laminados |
Techo Hogar and Asturiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techo Hogar and Asturiana
The main advantage of trading using opposite Techo Hogar and Asturiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techo Hogar position performs unexpectedly, Asturiana 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 Asturiana will offset losses from the drop in Asturiana's long position.| Techo Hogar vs. Airbus Group SE | Techo Hogar vs. Industria de Diseno | Techo Hogar vs. Vale SA | Techo Hogar vs. Iberdrola SA |
| Asturiana vs. Caixabank SA | Asturiana vs. Borges Agricultural Industrial | Asturiana vs. Techo Hogar SOCIMI, | Asturiana vs. Neinor Homes SLU |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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