Correlation Between Intralot and Centric Holdings
Can any of the company-specific risk be diversified away by investing in both Intralot and Centric Holdings 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 Intralot and Centric Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intralot SA Integrated and Centric Holdings SA, you can compare the effects of market volatilities on Intralot and Centric Holdings 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 Intralot with a short position of Centric Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intralot and Centric Holdings.
Diversification Opportunities for Intralot and Centric Holdings
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intralot and Centric is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated and Centric Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centric Holdings and Intralot 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 Intralot SA Integrated are associated (or correlated) with Centric Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centric Holdings has no effect on the direction of Intralot i.e., Intralot and Centric Holdings go up and down completely randomly.
Pair Corralation between Intralot and Centric Holdings
Assuming the 90 days trading horizon Intralot SA Integrated is expected to generate 1.06 times more return on investment than Centric Holdings. However, Intralot is 1.06 times more volatile than Centric Holdings SA. It trades about 0.06 of its potential returns per unit of risk. Centric Holdings SA is currently generating about 0.02 per unit of risk. If you would invest 60.00 in Intralot SA Integrated on August 31, 2024 and sell it today you would earn a total of 32.00 from holding Intralot SA Integrated or generate 53.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Intralot SA Integrated vs. Centric Holdings SA
Performance |
| Timeline |
| Intralot SA Integrated |
| Centric Holdings |
Intralot and Centric Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intralot and Centric Holdings
The main advantage of trading using opposite Intralot and Centric Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intralot position performs unexpectedly, Centric Holdings 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 Centric Holdings will offset losses from the drop in Centric Holdings' long position.| Intralot vs. Greek Organization of | Intralot vs. Public Power | Intralot vs. Mytilineos SA | Intralot vs. Hellenic Telecommunications Organization |
| Centric Holdings vs. Intralot SA Integrated | Centric Holdings vs. As Commercial Industrial | Centric Holdings vs. BriQ Properties Real | Centric Holdings vs. Trastor Real Estate |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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