Correlation Between Intertech and CPI Computer
Can any of the company-specific risk be diversified away by investing in both Intertech and CPI Computer 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 Intertech and CPI Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intertech SA Inter and CPI Computer Peripherals, you can compare the effects of market volatilities on Intertech and CPI Computer 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 Intertech with a short position of CPI Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intertech and CPI Computer.
Diversification Opportunities for Intertech and CPI Computer
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intertech and CPI is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intertech SA Inter and CPI Computer Peripherals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Computer Peripherals and Intertech 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 Intertech SA Inter are associated (or correlated) with CPI Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPI Computer Peripherals has no effect on the direction of Intertech i.e., Intertech and CPI Computer go up and down completely randomly.
Pair Corralation between Intertech and CPI Computer
Assuming the 90 days trading horizon Intertech SA Inter is expected to under-perform the CPI Computer. In addition to that, Intertech is 1.21 times more volatile than CPI Computer Peripherals. It trades about -0.24 of its total potential returns per unit of risk. CPI Computer Peripherals is currently generating about -0.12 per unit of volatility. If you would invest 55.00 in CPI Computer Peripherals on August 27, 2024 and sell it today you would lose (3.00) from holding CPI Computer Peripherals or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intertech SA Inter vs. CPI Computer Peripherals
Performance |
| Timeline |
| Intertech SA Inter |
| CPI Computer Peripherals |
Intertech and CPI Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intertech and CPI Computer
The main advantage of trading using opposite Intertech and CPI Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intertech position performs unexpectedly, CPI Computer 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 CPI Computer will offset losses from the drop in CPI Computer's long position.| Intertech vs. Intracom Holdings SA | Intertech vs. Public Power | Intertech vs. Hellenic Petroleum SA | Intertech vs. National Bank of |
| CPI Computer vs. Performance Technologies SA | CPI Computer vs. National Bank of | CPI Computer vs. EL D Mouzakis | CPI Computer 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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