Correlation Between Aedas Homes and Techo Hogar

Can any of the company-specific risk be diversified away by investing in both Aedas Homes 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 Aedas Homes and Techo Hogar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aedas Homes SL and Techo Hogar SOCIMI,, you can compare the effects of market volatilities on Aedas Homes 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 Aedas Homes with a short position of Techo Hogar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedas Homes and Techo Hogar.

Diversification Opportunities for Aedas Homes and Techo Hogar

-0.32

Correlation Coefficient

Aedas Homes  Techo Hogar

Very good diversification

The 3 months correlation between Aedas and Techo is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aedas Homes SL 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 Aedas Homes 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 Aedas Homes SL 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 Aedas Homes i.e., Aedas Homes and Techo Hogar go up and down completely randomly.

Pair Corralation between Aedas Homes and Techo Hogar

Assuming the 90 days trading horizon Aedas Homes SL is expected to under-perform the Techo Hogar. In addition to that, Aedas Homes is 8.41 times more volatile than Techo Hogar SOCIMI,. It trades about -0.01 of its total potential returns per unit of risk. Techo Hogar SOCIMI, is currently generating about 0.04 per unit of volatility. If you would invest  105.00  in Techo Hogar SOCIMI, on April 24, 2025 and sell it today you would earn a total of  1.00  from holding Techo Hogar SOCIMI, or generate 0.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aedas Homes SL  vs.  Techo Hogar SOCIMI,

Aedas Homes SL

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aedas Homes SL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Aedas Homes is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Techo Hogar SOCIMI,

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Techo Hogar SOCIMI, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Techo Hogar is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aedas Homes and Techo Hogar

The main advantage of trading using opposite Aedas Homes and Techo Hogar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedas Homes 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.

The idea behind Aedas Homes SL and Techo Hogar SOCIMI, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.