Correlation Between Centric Holdings and Intralot
Can any of the company-specific risk be diversified away by investing in both Centric Holdings and Intralot 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 Centric Holdings and Intralot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centric Holdings SA and Intralot SA Integrated, you can compare the effects of market volatilities on Centric Holdings and Intralot 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 Centric Holdings with a short position of Intralot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centric Holdings and Intralot.
Diversification Opportunities for Centric Holdings and Intralot
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Centric and Intralot is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Centric Holdings SA and Intralot SA Integrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intralot SA Integrated and Centric Holdings 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 Centric Holdings SA are associated (or correlated) with Intralot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intralot SA Integrated has no effect on the direction of Centric Holdings i.e., Centric Holdings and Intralot go up and down completely randomly.
Pair Corralation between Centric Holdings and Intralot
Assuming the 90 days trading horizon Centric Holdings is expected to generate 27.71 times less return on investment than Intralot. But when comparing it to its historical volatility, Centric Holdings SA is 2.22 times less risky than Intralot. It trades about 0.0 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 96.00 in Intralot SA Integrated on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Intralot SA Integrated or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centric Holdings SA vs. Intralot SA Integrated
Performance |
| Timeline |
| Centric Holdings |
| Intralot SA Integrated |
Centric Holdings and Intralot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centric Holdings and Intralot
The main advantage of trading using opposite Centric Holdings and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centric Holdings position performs unexpectedly, Intralot 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 Intralot will offset losses from the drop in Intralot's long position.| Centric Holdings vs. Intralot SA Integrated | Centric Holdings vs. As Commercial Industrial | Centric Holdings vs. BriQ Properties Real | Centric Holdings vs. Trastor Real Estate |
| Intralot vs. As Commercial Industrial | Intralot vs. BriQ Properties Real | Intralot vs. Trastor Real Estate |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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