Correlation Between GEK TERNA and Intracom Constructions
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By analyzing existing cross correlation between GEK TERNA Holdings and Intracom Constructions Societe, you can compare the effects of market volatilities on GEK TERNA 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 GEK TERNA with a short position of Intracom Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEK TERNA and Intracom Constructions.
Diversification Opportunities for GEK TERNA and Intracom Constructions
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GEK and Intracom is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding GEK TERNA Holdings and Intracom Constructions Societe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Constructions and GEK TERNA 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 GEK TERNA Holdings 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 GEK TERNA i.e., GEK TERNA and Intracom Constructions go up and down completely randomly.
Pair Corralation between GEK TERNA and Intracom Constructions
Assuming the 90 days trading horizon GEK TERNA is expected to generate 7.36 times less return on investment than Intracom Constructions. But when comparing it to its historical volatility, GEK TERNA Holdings is 3.5 times less risky than Intracom Constructions. It trades about 0.09 of its potential returns per unit of risk. Intracom Constructions Societe is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 484.00 in Intracom Constructions Societe on November 5, 2024 and sell it today you would earn a total of 31.00 from holding Intracom Constructions Societe or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEK TERNA Holdings vs. Intracom Constructions Societe
Performance |
| Timeline |
| GEK TERNA Holdings |
| Intracom Constructions |
GEK TERNA and Intracom Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEK TERNA and Intracom Constructions
The main advantage of trading using opposite GEK TERNA and Intracom Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEK TERNA 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.| GEK TERNA vs. Avax SA | GEK TERNA vs. Ekter SA | GEK TERNA vs. Intracom Constructions Societe | GEK TERNA vs. Alumil Aluminium Industry |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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