Correlation Between Elvalhalcor Hellenic and Intracom Constructions
Can any of the company-specific risk be diversified away by investing in both Elvalhalcor Hellenic 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 Elvalhalcor Hellenic and Intracom Constructions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elvalhalcor Hellenic Copper and Intracom Constructions Societe, you can compare the effects of market volatilities on Elvalhalcor Hellenic 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 Elvalhalcor Hellenic with a short position of Intracom Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elvalhalcor Hellenic and Intracom Constructions.
Diversification Opportunities for Elvalhalcor Hellenic and Intracom Constructions
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elvalhalcor and Intracom is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and Intracom Constructions Societe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Constructions and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper 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 Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and Intracom Constructions go up and down completely randomly.
Pair Corralation between Elvalhalcor Hellenic and Intracom Constructions
Assuming the 90 days trading horizon Elvalhalcor Hellenic is expected to generate 5.68 times less return on investment than Intracom Constructions. In addition to that, Elvalhalcor Hellenic is 1.14 times more volatile than Intracom Constructions Societe. It trades about 0.03 of its total potential returns per unit of risk. Intracom Constructions Societe is currently generating about 0.17 per unit of volatility. If you would invest 119.00 in Intracom Constructions Societe on August 30, 2024 and sell it today you would earn a total of 365.00 from holding Intracom Constructions Societe or generate 306.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elvalhalcor Hellenic Copper vs. Intracom Constructions Societe
Performance |
| Timeline |
| Elvalhalcor Hellenic |
| Intracom Constructions |
Elvalhalcor Hellenic and Intracom Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elvalhalcor Hellenic and Intracom Constructions
The main advantage of trading using opposite Elvalhalcor Hellenic and Intracom Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elvalhalcor Hellenic 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.| Elvalhalcor Hellenic vs. Cenergy Holdings SA | Elvalhalcor Hellenic vs. Mytilineos SA | Elvalhalcor Hellenic vs. Viohalco SA | Elvalhalcor Hellenic vs. Motor Oil Corinth |
| Intracom Constructions vs. Mytilineos SA | Intracom Constructions vs. Intracom Holdings SA | Intracom Constructions vs. Ellaktor SA | Intracom Constructions vs. GEK TERNA Holdings |
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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