Correlation Between Avax SA and Intracom Holdings
Can any of the company-specific risk be diversified away by investing in both Avax SA and Intracom Holdings 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 Avax SA and Intracom Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avax SA and Intracom Holdings SA, you can compare the effects of market volatilities on Avax SA and Intracom Holdings 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 Avax SA with a short position of Intracom Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avax SA and Intracom Holdings.
Diversification Opportunities for Avax SA and Intracom Holdings
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Avax and Intracom is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Avax SA and Intracom Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Holdings and Avax 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 Avax SA are associated (or correlated) with Intracom Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracom Holdings has no effect on the direction of Avax SA i.e., Avax SA and Intracom Holdings go up and down completely randomly.
Pair Corralation between Avax SA and Intracom Holdings
Assuming the 90 days trading horizon Avax SA is expected to generate 1.0 times more return on investment than Intracom Holdings. However, Avax SA is 1.0 times more volatile than Intracom Holdings SA. It trades about 0.06 of its potential returns per unit of risk. Intracom Holdings SA is currently generating about -0.07 per unit of risk. If you would invest 140.00 in Avax SA on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Avax SA or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Avax SA vs. Intracom Holdings SA
Performance |
| Timeline |
| Avax SA |
| Intracom Holdings |
Avax SA and Intracom Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avax SA and Intracom Holdings
The main advantage of trading using opposite Avax SA and Intracom Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avax SA position performs unexpectedly, Intracom Holdings 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 Intracom Holdings will offset losses from the drop in Intracom Holdings' long position.| Avax SA vs. Ellaktor SA | Avax SA vs. GEK TERNA Holdings | Avax SA vs. LAMDA Development SA | Avax SA vs. Public Power |
| Intracom Holdings vs. Intralot SA Integrated | Intracom Holdings vs. Mytilineos SA | Intracom Holdings vs. Public Power | Intracom Holdings vs. Hellenic Telecommunications Organization |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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