Correlation Between Hellenic Petroleum and Intertech
Can any of the company-specific risk be diversified away by investing in both Hellenic Petroleum 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 Hellenic Petroleum and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hellenic Petroleum SA and Intertech SA Inter, you can compare the effects of market volatilities on Hellenic Petroleum 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 Hellenic Petroleum with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Petroleum and Intertech.
Diversification Opportunities for Hellenic Petroleum and Intertech
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hellenic and Intertech is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Petroleum 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 Hellenic Petroleum 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 Hellenic Petroleum 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 Hellenic Petroleum i.e., Hellenic Petroleum and Intertech go up and down completely randomly.
Pair Corralation between Hellenic Petroleum and Intertech
Assuming the 90 days trading horizon Hellenic Petroleum SA is expected to generate 0.49 times more return on investment than Intertech. However, Hellenic Petroleum SA is 2.06 times less risky than Intertech. It trades about -0.03 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 683.00 in Hellenic Petroleum SA on August 30, 2024 and sell it today you would lose (8.00) from holding Hellenic Petroleum SA or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hellenic Petroleum SA vs. Intertech SA Inter
Performance |
| Timeline |
| Hellenic Petroleum |
| Intertech SA Inter |
Hellenic Petroleum and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Petroleum and Intertech
The main advantage of trading using opposite Hellenic Petroleum and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Petroleum 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.| Hellenic Petroleum vs. Motor Oil Corinth | Hellenic Petroleum vs. Greek Organization of | Hellenic Petroleum vs. Mytilineos SA | Hellenic Petroleum vs. Hellenic Telecommunications Organization |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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