Correlation Between Hispanotels Inversiones and General De

Can any of the company-specific risk be diversified away by investing in both Hispanotels Inversiones and General De 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 Hispanotels Inversiones and General De into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hispanotels Inversiones SOCIMI and General de Alquiler, you can compare the effects of market volatilities on Hispanotels Inversiones and General De 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 Hispanotels Inversiones with a short position of General De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hispanotels Inversiones and General De.

Diversification Opportunities for Hispanotels Inversiones and General De

0.21

Correlation Coefficient

Hispanotels Inversiones  General De

Modest diversification

The 3 months correlation between Hispanotels and General is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hispanotels Inversiones SOCIMI and General de Alquiler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General de Alquiler and Hispanotels Inversiones 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 Hispanotels Inversiones SOCIMI are associated (or correlated) with General De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General de Alquiler has no effect on the direction of Hispanotels Inversiones i.e., Hispanotels Inversiones and General De go up and down completely randomly.

Pair Corralation between Hispanotels Inversiones and General De

Assuming the 90 days trading horizon Hispanotels Inversiones SOCIMI is expected to generate 1.04 times more return on investment than General De. However, Hispanotels Inversiones is 1.04 times more volatile than General de Alquiler. It trades about 0.16 of its potential returns per unit of risk. General de Alquiler is currently generating about 0.1 per unit of risk. If you would invest  760.00  in Hispanotels Inversiones SOCIMI on April 23, 2025 and sell it today you would earn a total of  125.00  from holding Hispanotels Inversiones SOCIMI or generate 16.45% return on investment over 90 days.

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

Hispanotels Inversiones SOCIMI  vs.  General de Alquiler

Hispanotels Inversiones

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hispanotels Inversiones SOCIMI are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Hispanotels Inversiones exhibited solid returns over the last few months and may actually be approaching a breakup point.

General de Alquiler

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in General de Alquiler are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, General De may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hispanotels Inversiones and General De

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

The idea behind Hispanotels Inversiones SOCIMI and General de Alquiler 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..