Correlation Between Fidere Patrimonio and Home Capital

Can any of the company-specific risk be diversified away by investing in both Fidere Patrimonio and Home Capital 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 Fidere Patrimonio and Home Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fidere Patrimonio SOCIMI and Home Capital Rentals, you can compare the effects of market volatilities on Fidere Patrimonio and Home Capital 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 Fidere Patrimonio with a short position of Home Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidere Patrimonio and Home Capital.

Diversification Opportunities for Fidere Patrimonio and Home Capital

0.34

Correlation Coefficient

Fidere Patrimonio  Home Capital

Weak diversification

The 3 months correlation between Fidere and Home is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fidere Patrimonio SOCIMI and Home Capital Rentals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Capital Rentals and Fidere Patrimonio 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 Fidere Patrimonio SOCIMI are associated (or correlated) with Home Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Capital Rentals has no effect on the direction of Fidere Patrimonio i.e., Fidere Patrimonio and Home Capital go up and down completely randomly.

Pair Corralation between Fidere Patrimonio and Home Capital

Assuming the 90 days trading horizon Fidere Patrimonio SOCIMI is expected to generate 0.76 times more return on investment than Home Capital. However, Fidere Patrimonio SOCIMI is 1.32 times less risky than Home Capital. It trades about 0.27 of its potential returns per unit of risk. Home Capital Rentals is currently generating about -0.05 per unit of risk. If you would invest  2,940  in Fidere Patrimonio SOCIMI on April 24, 2025 and sell it today you would earn a total of  460.00  from holding Fidere Patrimonio SOCIMI or generate 15.65% return on investment over 90 days.

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

Fidere Patrimonio SOCIMI  vs.  Home Capital Rentals

Fidere Patrimonio SOCIMI

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidere Patrimonio SOCIMI are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Fidere Patrimonio exhibited solid returns over the last few months and may actually be approaching a breakup point.

Home Capital Rentals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Home Capital Rentals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Home Capital is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Fidere Patrimonio and Home Capital

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

The idea behind Fidere Patrimonio SOCIMI and Home Capital Rentals 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.