Correlation Between Hellenic Telecommunicatio and Intertech
Can any of the company-specific risk be diversified away by investing in both Hellenic Telecommunicatio 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 Telecommunicatio and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hellenic Telecommunications Organization and Intertech SA Inter, you can compare the effects of market volatilities on Hellenic Telecommunicatio 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 Telecommunicatio with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Telecommunicatio and Intertech.
Diversification Opportunities for Hellenic Telecommunicatio and Intertech
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hellenic and Intertech is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or 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 Telecommunicatio 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 Telecommunications Organization 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 Telecommunicatio i.e., Hellenic Telecommunicatio and Intertech go up and down completely randomly.
Pair Corralation between Hellenic Telecommunicatio and Intertech
Assuming the 90 days trading horizon Hellenic Telecommunications Organization is expected to under-perform the Intertech. But the stock apears to be less risky and, when comparing its historical volatility, Hellenic Telecommunications Organization is 1.75 times less risky than Intertech. The stock trades about -0.1 of its potential returns per unit of risk. The Intertech SA Inter is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 111.00 in Intertech SA Inter on October 26, 2024 and sell it today you would earn a total of 2.00 from holding Intertech SA Inter or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hellenic Telecommunications Or vs. Intertech SA Inter
Performance |
| Timeline |
| Hellenic Telecommunicatio |
| Intertech SA Inter |
Hellenic Telecommunicatio and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Telecommunicatio and Intertech
The main advantage of trading using opposite Hellenic Telecommunicatio and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Telecommunicatio 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 Telecommunicatio vs. Greek Organization of | Hellenic Telecommunicatio vs. Mytilineos SA | Hellenic Telecommunicatio vs. Public Power | Hellenic Telecommunicatio vs. Motor Oil Corinth |
| Intertech vs. Intracom Holdings SA | Intertech vs. Ideal Group SA | Intertech vs. Public Power | Intertech vs. Hellenic Petroleum 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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