Correlation Between HomesToLife and Caesarstone

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

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

Diversification Opportunities for HomesToLife and Caesarstone

0.21

Correlation Coefficient

HomesToLife  Caesarstone

Modest diversification

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

Pair Corralation between HomesToLife and Caesarstone

Given the investment horizon of 90 days HomesToLife is expected to under-perform the Caesarstone. But the stock apears to be less risky and, when comparing its historical volatility, HomesToLife is 1.8 times less risky than Caesarstone. The stock trades about -0.11 of its potential returns per unit of risk. The Caesarstone is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  144.00  in Caesarstone on September 11, 2025 and sell it today you would earn a total of  33.00  from holding Caesarstone or generate 22.92% return on investment over 90 days.

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

HomesToLife  vs.  Caesarstone

HomesToLife

Risk-Adjusted Performance

Weakest

Over the last 90 days HomesToLife has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Caesarstone

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Caesarstone are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Caesarstone exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HomesToLife and Caesarstone

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

The idea behind HomesToLife and Caesarstone 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.