Correlation Between Intralot and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Intralot and Mytilineos 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 Mytilineos 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 Mytilineos SA, you can compare the effects of market volatilities on Intralot and Mytilineos 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 Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intralot and Mytilineos.
Diversification Opportunities for Intralot and Mytilineos
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intralot and Mytilineos is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA 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 Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Intralot i.e., Intralot and Mytilineos go up and down completely randomly.
Pair Corralation between Intralot and Mytilineos
Assuming the 90 days trading horizon Intralot SA Integrated is expected to generate 1.57 times more return on investment than Mytilineos. However, Intralot is 1.57 times more volatile than Mytilineos SA. It trades about 0.06 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.01 per unit of risk. If you would invest 65.00 in Intralot SA Integrated on August 25, 2024 and sell it today you would earn a total of 24.00 from holding Intralot SA Integrated or generate 36.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intralot SA Integrated vs. Mytilineos SA
Performance |
| Timeline |
| Intralot SA Integrated |
| Mytilineos SA |
Intralot and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intralot and Mytilineos
The main advantage of trading using opposite Intralot and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intralot position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.| Intralot vs. Mytilineos SA | Intralot vs. Hellenic Telecommunications Organization | Intralot vs. Motor Oil Corinth | Intralot vs. Alpha Services and |
| Mytilineos vs. Viohalco SA | Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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