Correlation Between Interlife General and Viohalco
Can any of the company-specific risk be diversified away by investing in both Interlife General and Viohalco 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 Viohalco 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 Viohalco SA, you can compare the effects of market volatilities on Interlife General and Viohalco 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 Viohalco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlife General and Viohalco.
Diversification Opportunities for Interlife General and Viohalco
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Interlife and Viohalco is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Interlife General Insurance and Viohalco SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viohalco SA 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 Viohalco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viohalco SA has no effect on the direction of Interlife General i.e., Interlife General and Viohalco go up and down completely randomly.
Pair Corralation between Interlife General and Viohalco
Assuming the 90 days trading horizon Interlife General is expected to generate 2.13 times less return on investment than Viohalco. But when comparing it to its historical volatility, Interlife General Insurance is 1.33 times less risky than Viohalco. It trades about 0.02 of its potential returns per unit of risk. Viohalco SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Viohalco SA on September 2, 2024 and sell it today you would earn a total of 116.00 from holding Viohalco SA or generate 28.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interlife General Insurance vs. Viohalco SA
Performance |
| Timeline |
| Interlife General |
| Viohalco SA |
Interlife General and Viohalco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlife General and Viohalco
The main advantage of trading using opposite Interlife General and Viohalco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlife General position performs unexpectedly, Viohalco 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 Viohalco will offset losses from the drop in Viohalco's long position.| Interlife General vs. Admie Holding SA | Interlife General vs. Coca Cola HBC AG | Interlife General vs. Quest Holdings SA | Interlife General vs. Motor Oil Corinth |
| Viohalco vs. National Bank of | Viohalco vs. N Leventeris SA | Viohalco vs. Eurobank Ergasias Services | Viohalco vs. Vogiatzoglou Systems 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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