Correlation Between Tecnisa SA and Even Construtora

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

By analyzing existing cross correlation between Tecnisa SA and Even Construtora e, you can compare the effects of market volatilities on Tecnisa SA and Even Construtora 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 Even Construtora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecnisa SA and Even Construtora.

Diversification Opportunities for Tecnisa SA and Even Construtora

0.48

Correlation Coefficient

Tecnisa SA  Even Construtora

Very weak diversification

The 3 months correlation between Tecnisa and Even is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tecnisa SA and Even Construtora e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Even Construtora e 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 Even Construtora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Even Construtora e has no effect on the direction of Tecnisa SA i.e., Tecnisa SA and Even Construtora go up and down completely randomly.

Pair Corralation between Tecnisa SA and Even Construtora

Assuming the 90 days trading horizon Tecnisa SA is expected to under-perform the Even Construtora. In addition to that, Tecnisa SA is 1.09 times more volatile than Even Construtora e. It trades about -0.18 of its total potential returns per unit of risk. Even Construtora e is currently generating about -0.04 per unit of volatility. If you would invest  620.00  in Even Construtora e on September 15, 2024 and sell it today you would lose (57.00) from holding Even Construtora e or give up 9.19% of portfolio value over 90 days.

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

Tecnisa SA  vs.  Even Construtora e

Tecnisa SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tecnisa 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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Even Construtora e

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Even Construtora e has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Tecnisa SA and Even Construtora

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

The idea behind Tecnisa SA and Even Construtora e 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.