Correlation Between Aedas Homes and FORTRESS BIOTECHPRFA

Can any of the company-specific risk be diversified away by investing in both Aedas Homes and FORTRESS BIOTECHPRFA 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 Aedas Homes and FORTRESS BIOTECHPRFA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aedas Homes SA and FORTRESS BIOTECHPRFA 25, you can compare the effects of market volatilities on Aedas Homes and FORTRESS BIOTECHPRFA 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 Aedas Homes with a short position of FORTRESS BIOTECHPRFA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedas Homes and FORTRESS BIOTECHPRFA.

Diversification Opportunities for Aedas Homes and FORTRESS BIOTECHPRFA

-0.21

Correlation Coefficient

Aedas Homes  FORTRESS BIOTECHPRFA

Very good diversification

The 3 months correlation between Aedas and FORTRESS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aedas Homes SA and FORTRESS BIOTECHPRFA 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORTRESS BIOTECHPRFA and Aedas Homes 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 Aedas Homes SA are associated (or correlated) with FORTRESS BIOTECHPRFA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORTRESS BIOTECHPRFA has no effect on the direction of Aedas Homes i.e., Aedas Homes and FORTRESS BIOTECHPRFA go up and down completely randomly.

Pair Corralation between Aedas Homes and FORTRESS BIOTECHPRFA

Assuming the 90 days horizon Aedas Homes SA is expected to under-perform the FORTRESS BIOTECHPRFA. But the stock apears to be less risky and, when comparing its historical volatility, Aedas Homes SA is 1.41 times less risky than FORTRESS BIOTECHPRFA. The stock trades about -0.05 of its potential returns per unit of risk. The FORTRESS BIOTECHPRFA 25 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  575.00  in FORTRESS BIOTECHPRFA 25 on May 3, 2025 and sell it today you would earn a total of  25.00  from holding FORTRESS BIOTECHPRFA 25 or generate 4.35% return on investment over 90 days.

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

Aedas Homes SA  vs.  FORTRESS BIOTECHPRFA 25

Aedas Homes SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aedas Homes SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

FORTRESS BIOTECHPRFA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FORTRESS BIOTECHPRFA 25 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, FORTRESS BIOTECHPRFA may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Aedas Homes and FORTRESS BIOTECHPRFA

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

The idea behind Aedas Homes SA and FORTRESS BIOTECHPRFA 25 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.