Correlation Between Intralot and Frigoglass SAIC
Can any of the company-specific risk be diversified away by investing in both Intralot and Frigoglass SAIC 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 Frigoglass SAIC 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 Frigoglass SAIC, you can compare the effects of market volatilities on Intralot and Frigoglass SAIC 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 Frigoglass SAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intralot and Frigoglass SAIC.
Diversification Opportunities for Intralot and Frigoglass SAIC
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intralot and Frigoglass is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated and Frigoglass SAIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frigoglass SAIC 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 Frigoglass SAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frigoglass SAIC has no effect on the direction of Intralot i.e., Intralot and Frigoglass SAIC go up and down completely randomly.
Pair Corralation between Intralot and Frigoglass SAIC
Assuming the 90 days trading horizon Intralot SA Integrated is expected to generate 0.31 times more return on investment than Frigoglass SAIC. However, Intralot SA Integrated is 3.2 times less risky than Frigoglass SAIC. It trades about 0.04 of its potential returns per unit of risk. Frigoglass SAIC is currently generating about -0.04 per unit of risk. If you would invest 105.00 in Intralot SA Integrated on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Intralot SA Integrated or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intralot SA Integrated vs. Frigoglass SAIC
Performance |
| Timeline |
| Intralot SA Integrated |
| Frigoglass SAIC |
Intralot and Frigoglass SAIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intralot and Frigoglass SAIC
The main advantage of trading using opposite Intralot and Frigoglass SAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intralot position performs unexpectedly, Frigoglass SAIC 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 Frigoglass SAIC will offset losses from the drop in Frigoglass SAIC's long position.| Intralot vs. Greek Organization of | Intralot vs. Public Power | Intralot vs. Mytilineos SA | Intralot vs. Hellenic Telecommunications Organization |
| Frigoglass SAIC vs. Public Power | Frigoglass SAIC vs. Intralot SA Integrated | Frigoglass SAIC vs. Hellenic Petroleum SA | Frigoglass SAIC vs. Mytilineos 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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