Correlation Between Intracom Constructions and EL D
Can any of the company-specific risk be diversified away by investing in both Intracom Constructions and EL D 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 EL D 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 EL D Mouzakis, you can compare the effects of market volatilities on Intracom Constructions and EL D 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 EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Constructions and EL D.
Diversification Opportunities for Intracom Constructions and EL D
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intracom and MOYZK is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Constructions Societe and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis 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 EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of Intracom Constructions i.e., Intracom Constructions and EL D go up and down completely randomly.
Pair Corralation between Intracom Constructions and EL D
Assuming the 90 days trading horizon Intracom Constructions Societe is expected to generate 0.67 times more return on investment than EL D. However, Intracom Constructions Societe is 1.48 times less risky than EL D. It trades about 0.09 of its potential returns per unit of risk. EL D Mouzakis is currently generating about -0.31 per unit of risk. If you would invest 483.00 in Intracom Constructions Societe on September 25, 2024 and sell it today you would earn a total of 6.00 from holding Intracom Constructions Societe or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intracom Constructions Societe vs. EL D Mouzakis
Performance |
| Timeline |
| Intracom Constructions |
| EL D Mouzakis |
Intracom Constructions and EL D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Constructions and EL D
The main advantage of trading using opposite Intracom Constructions and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Constructions position performs unexpectedly, EL D 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 EL D will offset losses from the drop in EL D's long position.| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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