Correlation Between Gafisa SA and Helbor Empreendimentos

Can any of the company-specific risk be diversified away by investing in both Gafisa SA and Helbor Empreendimentos 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 Gafisa SA and Helbor Empreendimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gafisa SA and Helbor Empreendimentos SA, you can compare the effects of market volatilities on Gafisa SA and Helbor Empreendimentos 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 Gafisa SA with a short position of Helbor Empreendimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gafisa SA and Helbor Empreendimentos.

Diversification Opportunities for Gafisa SA and Helbor Empreendimentos

-0.13

Correlation Coefficient

Gafisa SA  Helbor Empreendimentos

Good diversification

The 3 months correlation between Gafisa and Helbor is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gafisa SA and Helbor Empreendimentos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helbor Empreendimentos and Gafisa 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 Gafisa SA are associated (or correlated) with Helbor Empreendimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helbor Empreendimentos has no effect on the direction of Gafisa SA i.e., Gafisa SA and Helbor Empreendimentos go up and down completely randomly.

Pair Corralation between Gafisa SA and Helbor Empreendimentos

Assuming the 90 days trading horizon Gafisa SA is expected to under-perform the Helbor Empreendimentos. But the stock apears to be less risky and, when comparing its historical volatility, Gafisa SA is 1.17 times less risky than Helbor Empreendimentos. The stock trades about -0.24 of its potential returns per unit of risk. The Helbor Empreendimentos SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  215.00  in Helbor Empreendimentos SA on April 24, 2025 and sell it today you would earn a total of  22.00  from holding Helbor Empreendimentos SA or generate 10.23% return on investment over 90 days.

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

Gafisa SA  vs.  Helbor Empreendimentos SA

Gafisa SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gafisa SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Helbor Empreendimentos

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Helbor Empreendimentos SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Helbor Empreendimentos unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gafisa SA and Helbor Empreendimentos

The main advantage of trading using opposite Gafisa SA and Helbor Empreendimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gafisa SA position performs unexpectedly, Helbor Empreendimentos 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 Helbor Empreendimentos will offset losses from the drop in Helbor Empreendimentos' long position.

The idea behind Gafisa SA and Helbor Empreendimentos SA 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.