Correlation Between Ideal Group and Intertech
Can any of the company-specific risk be diversified away by investing in both Ideal Group and Intertech 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 Ideal Group and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ideal Group SA and Intertech SA Inter, you can compare the effects of market volatilities on Ideal Group and Intertech 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 Ideal Group with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ideal Group and Intertech.
Diversification Opportunities for Ideal Group and Intertech
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ideal and Intertech is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ideal Group SA and Intertech SA Inter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertech SA Inter and Ideal Group 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 Ideal Group SA are associated (or correlated) with Intertech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertech SA Inter has no effect on the direction of Ideal Group i.e., Ideal Group and Intertech go up and down completely randomly.
Pair Corralation between Ideal Group and Intertech
Assuming the 90 days trading horizon Ideal Group SA is expected to generate 0.62 times more return on investment than Intertech. However, Ideal Group SA is 1.61 times less risky than Intertech. It trades about 0.0 of its potential returns per unit of risk. Intertech SA Inter is currently generating about -0.02 per unit of risk. If you would invest 604.00 in Ideal Group SA on September 1, 2024 and sell it today you would lose (19.00) from holding Ideal Group SA or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Ideal Group SA vs. Intertech SA Inter
Performance |
| Timeline |
| Ideal Group SA |
| Intertech SA Inter |
Ideal Group and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ideal Group and Intertech
The main advantage of trading using opposite Ideal Group and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ideal Group position performs unexpectedly, Intertech 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 Intertech will offset losses from the drop in Intertech's long position.| Ideal Group vs. Hellenic Telecommunications Organization | Ideal Group vs. Terna Energy Societe | Ideal Group vs. Motor Oil Corinth | Ideal Group vs. Public Power |
| Intertech vs. Unibios Holdings SA | Intertech vs. Intracom Holdings SA | Intertech vs. Ideal Group SA | Intertech vs. Public Power |
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 CEOs Directory module to screen CEOs from public companies around the world.
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