Correlation Between Intracom Constructions and Intralot
Can any of the company-specific risk be diversified away by investing in both Intracom Constructions and Intralot 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 Intracom Constructions and Intralot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intracom Constructions Societe and Intralot SA Integrated, you can compare the effects of market volatilities on Intracom Constructions and Intralot 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 Intracom Constructions with a short position of Intralot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Constructions and Intralot.
Diversification Opportunities for Intracom Constructions and Intralot
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intracom and Intralot is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Constructions Societe and Intralot SA Integrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intralot SA Integrated and Intracom Constructions 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 Intracom Constructions Societe are associated (or correlated) with Intralot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intralot SA Integrated has no effect on the direction of Intracom Constructions i.e., Intracom Constructions and Intralot go up and down completely randomly.
Pair Corralation between Intracom Constructions and Intralot
Assuming the 90 days trading horizon Intracom Constructions Societe is expected to generate 0.4 times more return on investment than Intralot. However, Intracom Constructions Societe is 2.47 times less risky than Intralot. It trades about -0.01 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about -0.17 per unit of risk. If you would invest 485.00 in Intracom Constructions Societe on September 2, 2024 and sell it today you would lose (1.00) from holding Intracom Constructions Societe or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intracom Constructions Societe vs. Intralot SA Integrated
Performance |
| Timeline |
| Intracom Constructions |
| Intralot SA Integrated |
Intracom Constructions and Intralot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Constructions and Intralot
The main advantage of trading using opposite Intracom Constructions and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Constructions position performs unexpectedly, Intralot 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 Intralot will offset losses from the drop in Intralot's long position.| Intracom Constructions vs. Mytilineos SA | Intracom Constructions vs. GEK TERNA Holdings | Intracom Constructions vs. Hellenic Petroleum SA | Intracom Constructions vs. National Bank of |
| Intralot vs. Greek Organization of | Intralot vs. Public Power | Intralot vs. Mytilineos SA | Intralot 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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