Correlation Between CPI Computer and Intertech
Can any of the company-specific risk be diversified away by investing in both CPI Computer and Intertech 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 CPI Computer and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPI Computer Peripherals and Intertech SA Inter, you can compare the effects of market volatilities on CPI Computer and Intertech 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 CPI Computer with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPI Computer and Intertech.
Diversification Opportunities for CPI Computer and Intertech
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CPI and Intertech is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CPI Computer Peripherals and Intertech SA Inter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertech SA Inter and CPI Computer 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 CPI Computer Peripherals are associated (or correlated) with Intertech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertech SA Inter has no effect on the direction of CPI Computer i.e., CPI Computer and Intertech go up and down completely randomly.
Pair Corralation between CPI Computer and Intertech
Assuming the 90 days trading horizon CPI Computer Peripherals is expected to generate 0.85 times more return on investment than Intertech. However, CPI Computer Peripherals is 1.17 times less risky than Intertech. It trades about -0.14 of its potential returns per unit of risk. Intertech SA Inter is currently generating about -0.16 per unit of risk. If you would invest 55.00 in CPI Computer Peripherals on August 30, 2024 and sell it today you would lose (4.00) from holding CPI Computer Peripherals or give up 7.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPI Computer Peripherals vs. Intertech SA Inter
Performance |
| Timeline |
| CPI Computer Peripherals |
| Intertech SA Inter |
CPI Computer and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPI Computer and Intertech
The main advantage of trading using opposite CPI Computer and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPI Computer position performs unexpectedly, Intertech 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 Intertech will offset losses from the drop in Intertech's long position.| CPI Computer vs. National Bank of | CPI Computer vs. EL D Mouzakis | CPI Computer vs. Lampsa Hellenic Hotels | CPI Computer vs. Eurobank Ergasias Services |
| Intertech vs. Intracom Holdings SA | Intertech vs. Public Power | Intertech vs. Hellenic Petroleum SA | Intertech vs. National Bank of |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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