Correlation Between Ekter SA and Intracom Constructions
Can any of the company-specific risk be diversified away by investing in both Ekter SA and Intracom Constructions 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 Ekter SA and Intracom Constructions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekter SA and Intracom Constructions Societe, you can compare the effects of market volatilities on Ekter SA and Intracom Constructions 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 Ekter SA with a short position of Intracom Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekter SA and Intracom Constructions.
Diversification Opportunities for Ekter SA and Intracom Constructions
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ekter and Intracom is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ekter SA and Intracom Constructions Societe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Constructions and Ekter 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 Ekter SA are associated (or correlated) with Intracom Constructions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracom Constructions has no effect on the direction of Ekter SA i.e., Ekter SA and Intracom Constructions go up and down completely randomly.
Pair Corralation between Ekter SA and Intracom Constructions
Assuming the 90 days trading horizon Ekter SA is expected to generate 2.27 times more return on investment than Intracom Constructions. However, Ekter SA is 2.27 times more volatile than Intracom Constructions Societe. It trades about 0.05 of its potential returns per unit of risk. Intracom Constructions Societe is currently generating about -0.13 per unit of risk. If you would invest 148.00 in Ekter SA on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Ekter SA or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekter SA vs. Intracom Constructions Societe
Performance |
| Timeline |
| Ekter SA |
| Intracom Constructions |
Ekter SA and Intracom Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekter SA and Intracom Constructions
The main advantage of trading using opposite Ekter SA and Intracom Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekter SA position performs unexpectedly, Intracom Constructions 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 Constructions will offset losses from the drop in Intracom Constructions' long position.| Ekter SA vs. Mytilineos SA | Ekter SA vs. Terna Energy Societe | Ekter SA vs. Greek Organization of | Ekter SA vs. Motor Oil Corinth |
| Intracom Constructions vs. Intracom Holdings SA | Intracom Constructions vs. Intralot SA Integrated | Intracom Constructions vs. Ekter SA | Intracom Constructions vs. Avax SA |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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