Correlation Between Intertech and Athens Medical
Can any of the company-specific risk be diversified away by investing in both Intertech and Athens Medical 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 Athens Medical 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 Athens Medical CSA, you can compare the effects of market volatilities on Intertech and Athens Medical 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 Athens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intertech and Athens Medical.
Diversification Opportunities for Intertech and Athens Medical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intertech and Athens is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Intertech SA Inter and Athens Medical CSA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athens Medical CSA 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 Athens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athens Medical CSA has no effect on the direction of Intertech i.e., Intertech and Athens Medical go up and down completely randomly.
Pair Corralation between Intertech and Athens Medical
Assuming the 90 days trading horizon Intertech SA Inter is expected to under-perform the Athens Medical. But the stock apears to be less risky and, when comparing its historical volatility, Intertech SA Inter is 1.48 times less risky than Athens Medical. The stock trades about -0.06 of its potential returns per unit of risk. The Athens Medical CSA is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Athens Medical CSA on November 5, 2024 and sell it today you would earn a total of 28.00 from holding Athens Medical CSA or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intertech SA Inter vs. Athens Medical CSA
Performance |
| Timeline |
| Intertech SA Inter |
| Athens Medical CSA |
Intertech and Athens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intertech and Athens Medical
The main advantage of trading using opposite Intertech and Athens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intertech position performs unexpectedly, Athens Medical 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 Athens Medical will offset losses from the drop in Athens Medical's long position.| Intertech vs. Unibios Holdings SA | Intertech vs. Intracom Holdings SA | Intertech vs. Ideal Group SA | Intertech vs. Public Power |
| Athens Medical vs. Hellenic Exchanges | Athens Medical vs. Hellenic Telecommunications Organization | Athens Medical vs. GEK TERNA Holdings | Athens Medical vs. Piraeus Port Authority |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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