Correlation Between Hellenic Petroleum and Intracom Holdings
Can any of the company-specific risk be diversified away by investing in both Hellenic Petroleum and Intracom Holdings 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 Intracom Holdings 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 Intracom Holdings SA, you can compare the effects of market volatilities on Hellenic Petroleum and Intracom Holdings 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 Intracom Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Petroleum and Intracom Holdings.
Diversification Opportunities for Hellenic Petroleum and Intracom Holdings
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hellenic and Intracom is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Petroleum SA and Intracom Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Holdings 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 Intracom Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracom Holdings has no effect on the direction of Hellenic Petroleum i.e., Hellenic Petroleum and Intracom Holdings go up and down completely randomly.
Pair Corralation between Hellenic Petroleum and Intracom Holdings
Assuming the 90 days trading horizon Hellenic Petroleum is expected to generate 3.52 times less return on investment than Intracom Holdings. But when comparing it to its historical volatility, Hellenic Petroleum SA is 1.52 times less risky than Intracom Holdings. It trades about 0.03 of its potential returns per unit of risk. Intracom Holdings SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 153.00 in Intracom Holdings SA on August 25, 2024 and sell it today you would earn a total of 112.00 from holding Intracom Holdings SA or generate 73.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hellenic Petroleum SA vs. Intracom Holdings SA
Performance |
| Timeline |
| Hellenic Petroleum |
| Intracom Holdings |
Hellenic Petroleum and Intracom Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Petroleum and Intracom Holdings
The main advantage of trading using opposite Hellenic Petroleum and Intracom Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Petroleum position performs unexpectedly, Intracom Holdings 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 Holdings will offset losses from the drop in Intracom Holdings' 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 |
| Intracom Holdings vs. Intralot SA Integrated | Intracom Holdings vs. Mytilineos SA | Intracom Holdings vs. Public Power | Intracom Holdings vs. Hellenic Telecommunications Organization |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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