Correlation Between Interlife General and Optronics Technologies
Can any of the company-specific risk be diversified away by investing in both Interlife General and Optronics Technologies 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 Interlife General and Optronics Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interlife General Insurance and Optronics Technologies SA, you can compare the effects of market volatilities on Interlife General and Optronics Technologies 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 Interlife General with a short position of Optronics Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlife General and Optronics Technologies.
Diversification Opportunities for Interlife General and Optronics Technologies
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Interlife and Optronics is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Interlife General Insurance and Optronics Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optronics Technologies and Interlife General 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 Interlife General Insurance are associated (or correlated) with Optronics Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optronics Technologies has no effect on the direction of Interlife General i.e., Interlife General and Optronics Technologies go up and down completely randomly.
Pair Corralation between Interlife General and Optronics Technologies
Assuming the 90 days trading horizon Interlife General Insurance is expected to generate 0.6 times more return on investment than Optronics Technologies. However, Interlife General Insurance is 1.67 times less risky than Optronics Technologies. It trades about 0.02 of its potential returns per unit of risk. Optronics Technologies SA is currently generating about 0.0 per unit of risk. If you would invest 387.00 in Interlife General Insurance on August 27, 2024 and sell it today you would earn a total of 41.00 from holding Interlife General Insurance or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Interlife General Insurance vs. Optronics Technologies SA
Performance |
| Timeline |
| Interlife General |
| Optronics Technologies |
Interlife General and Optronics Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlife General and Optronics Technologies
The main advantage of trading using opposite Interlife General and Optronics Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlife General position performs unexpectedly, Optronics Technologies 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 Optronics Technologies will offset losses from the drop in Optronics Technologies' long position.The idea behind Interlife General Insurance and Optronics Technologies SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Optronics Technologies vs. Mytilineos SA | Optronics Technologies vs. Motor Oil Corinth | Optronics Technologies vs. Hellenic Petroleum SA | Optronics Technologies vs. National Bank of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |