Correlation Between Intracom Constructions and Bank of Greece
Can any of the company-specific risk be diversified away by investing in both Intracom Constructions and Bank of Greece 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 Bank of Greece 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 Bank of Greece, you can compare the effects of market volatilities on Intracom Constructions and Bank of Greece 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 Bank of Greece. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Constructions and Bank of Greece.
Diversification Opportunities for Intracom Constructions and Bank of Greece
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intracom and Bank is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Constructions Societe and Bank of Greece in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Greece 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 Bank of Greece. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Greece has no effect on the direction of Intracom Constructions i.e., Intracom Constructions and Bank of Greece go up and down completely randomly.
Pair Corralation between Intracom Constructions and Bank of Greece
Assuming the 90 days trading horizon Intracom Constructions Societe is expected to under-perform the Bank of Greece. In addition to that, Intracom Constructions is 1.81 times more volatile than Bank of Greece. It trades about -0.05 of its total potential returns per unit of risk. Bank of Greece is currently generating about -0.04 per unit of volatility. If you would invest 1,320 in Bank of Greece on August 25, 2024 and sell it today you would lose (10.00) from holding Bank of Greece or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intracom Constructions Societe vs. Bank of Greece
Performance |
| Timeline |
| Intracom Constructions |
| Bank of Greece |
Intracom Constructions and Bank of Greece Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Constructions and Bank of Greece
The main advantage of trading using opposite Intracom Constructions and Bank of Greece positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Constructions position performs unexpectedly, Bank of Greece 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 Bank of Greece will offset losses from the drop in Bank of Greece'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 |
| Bank of Greece vs. Intracom Constructions Societe | Bank of Greece vs. Daios Plastics SA | Bank of Greece vs. Sidma SA Steel | Bank of Greece vs. Optronics Technologies 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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