Correlation Between Tecnisa SA and Helbor Empreendimentos

Can any of the company-specific risk be diversified away by investing in both Tecnisa 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 Tecnisa 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 Tecnisa SA and Helbor Empreendimentos SA, you can compare the effects of market volatilities on Tecnisa 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 Tecnisa SA with a short position of Helbor Empreendimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecnisa SA and Helbor Empreendimentos.

Diversification Opportunities for Tecnisa SA and Helbor Empreendimentos

-0.53

Correlation Coefficient

Tecnisa SA  Helbor Empreendimentos

Excellent diversification

The 3 months correlation between Tecnisa and Helbor is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tecnisa 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 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 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 Tecnisa SA i.e., Tecnisa SA and Helbor Empreendimentos go up and down completely randomly.

Pair Corralation between Tecnisa SA and Helbor Empreendimentos

Assuming the 90 days trading horizon Tecnisa SA is expected to generate 1.15 times more return on investment than Helbor Empreendimentos. However, Tecnisa SA is 1.15 times more volatile than Helbor Empreendimentos SA. It trades about 0.1 of its potential returns per unit of risk. Helbor Empreendimentos SA is currently generating about 0.07 per unit of risk. If you would invest  138.00  in Tecnisa SA on April 23, 2025 and sell it today you would earn a total of  42.00  from holding Tecnisa SA or generate 30.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Tecnisa SA  vs.  Helbor Empreendimentos SA

Tecnisa SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tecnisa SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Tecnisa SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Helbor Empreendimentos

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Helbor Empreendimentos SA are ranked lower than 5 (%) 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 Tecnisa SA and Helbor Empreendimentos

The main advantage of trading using opposite Tecnisa SA and Helbor Empreendimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecnisa 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 Tecnisa 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.