Correlation Between Intracom Constructions and Thessaloniki Port
Can any of the company-specific risk be diversified away by investing in both Intracom Constructions and Thessaloniki Port 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 Thessaloniki Port 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 Thessaloniki Port Authority, you can compare the effects of market volatilities on Intracom Constructions and Thessaloniki Port 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 Thessaloniki Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Constructions and Thessaloniki Port.
Diversification Opportunities for Intracom Constructions and Thessaloniki Port
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intracom and Thessaloniki is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Constructions Societe and Thessaloniki Port Authority in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thessaloniki Port 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 Thessaloniki Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thessaloniki Port has no effect on the direction of Intracom Constructions i.e., Intracom Constructions and Thessaloniki Port go up and down completely randomly.
Pair Corralation between Intracom Constructions and Thessaloniki Port
Assuming the 90 days trading horizon Intracom Constructions Societe is expected to under-perform the Thessaloniki Port. In addition to that, Intracom Constructions is 1.13 times more volatile than Thessaloniki Port Authority. It trades about -0.05 of its total potential returns per unit of risk. Thessaloniki Port Authority is currently generating about -0.04 per unit of volatility. If you would invest 2,120 in Thessaloniki Port Authority on August 25, 2024 and sell it today you would lose (30.00) from holding Thessaloniki Port Authority or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intracom Constructions Societe vs. Thessaloniki Port Authority
Performance |
| Timeline |
| Intracom Constructions |
| Thessaloniki Port |
Intracom Constructions and Thessaloniki Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Constructions and Thessaloniki Port
The main advantage of trading using opposite Intracom Constructions and Thessaloniki Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Constructions position performs unexpectedly, Thessaloniki Port 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 Thessaloniki Port will offset losses from the drop in Thessaloniki Port's long position.| Intracom Constructions vs. Intracom Holdings SA | Intracom Constructions vs. Intralot SA Integrated | Intracom Constructions vs. Ekter SA | Intracom Constructions vs. Avax SA |
| Thessaloniki Port vs. Karelia Tobacco | Thessaloniki Port vs. Aegean Airlines SA | Thessaloniki Port vs. Intracom Constructions Societe | Thessaloniki Port vs. Interlife General Insurance |
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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