Correlation Between Techo Hogar and Home Capital

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

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

Diversification Opportunities for Techo Hogar and Home Capital

0.0

Correlation Coefficient

Techo Hogar  Home Capital

Pay attention - limited upside

The 3 months correlation between Techo and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Techo Hogar 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 Techo Hogar 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 Techo Hogar 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 Techo Hogar i.e., Techo Hogar and Home Capital go up and down completely randomly.

Pair Corralation between Techo Hogar and Home Capital

Assuming the 90 days trading horizon Techo Hogar SOCIMI, is expected to generate 4.22 times more return on investment than Home Capital. However, Techo Hogar is 4.22 times more volatile than Home Capital Rentals. It trades about 0.04 of its potential returns per unit of risk. Home Capital Rentals is currently generating about 0.12 per unit of risk. If you would invest  105.00  in Techo Hogar SOCIMI, on April 22, 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	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Techo Hogar SOCIMI,  vs.  Home Capital Rentals

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.

Home Capital Rentals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Home Capital Rentals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. 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 Techo Hogar and Home Capital

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

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.