Correlation Between Dimand SA and Intertech
Can any of the company-specific risk be diversified away by investing in both Dimand SA 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 Dimand SA and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimand SA and Intertech SA Inter, you can compare the effects of market volatilities on Dimand SA 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 Dimand SA with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimand SA and Intertech.
Diversification Opportunities for Dimand SA and Intertech
Average diversification
The 3 months correlation between Dimand and Intertech is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dimand SA 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 Dimand 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 Dimand SA 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 Dimand SA i.e., Dimand SA and Intertech go up and down completely randomly.
Pair Corralation between Dimand SA and Intertech
Assuming the 90 days trading horizon Dimand SA is expected to generate 2.51 times less return on investment than Intertech. But when comparing it to its historical volatility, Dimand SA is 2.42 times less risky than Intertech. It trades about 0.13 of its potential returns per unit of risk. Intertech SA Inter is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 111.00 in Intertech SA Inter on November 29, 2024 and sell it today you would earn a total of 7.00 from holding Intertech SA Inter or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dimand SA vs. Intertech SA Inter
Performance |
| Timeline |
| Dimand SA |
| Intertech SA Inter |
Dimand SA and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimand SA and Intertech
The main advantage of trading using opposite Dimand SA and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimand SA 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.| Dimand SA vs. Intertech SA Inter | Dimand SA vs. Profile Systems Software | Dimand SA vs. Foodlink AE | Dimand SA vs. Thrace Plastics Holding |
| Intertech vs. Unibios Holdings SA | Intertech vs. Intracom Holdings SA | Intertech vs. Ideal Group SA | Intertech vs. Public Power |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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