Correlation Between Intertech and Philippos Nakas
Can any of the company-specific risk be diversified away by investing in both Intertech and Philippos Nakas 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 Philippos Nakas 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 Philippos Nakas SA, you can compare the effects of market volatilities on Intertech and Philippos Nakas 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 Philippos Nakas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intertech and Philippos Nakas.
Diversification Opportunities for Intertech and Philippos Nakas
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intertech and Philippos is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intertech SA Inter and Philippos Nakas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philippos Nakas SA 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 Philippos Nakas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philippos Nakas SA has no effect on the direction of Intertech i.e., Intertech and Philippos Nakas go up and down completely randomly.
Pair Corralation between Intertech and Philippos Nakas
Assuming the 90 days trading horizon Intertech SA Inter is expected to generate 1.14 times more return on investment than Philippos Nakas. However, Intertech is 1.14 times more volatile than Philippos Nakas SA. It trades about 0.01 of its potential returns per unit of risk. Philippos Nakas SA is currently generating about -0.02 per unit of risk. If you would invest 105.00 in Intertech SA Inter on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Intertech SA Inter or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intertech SA Inter vs. Philippos Nakas SA
Performance |
| Timeline |
| Intertech SA Inter |
| Philippos Nakas SA |
Intertech and Philippos Nakas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intertech and Philippos Nakas
The main advantage of trading using opposite Intertech and Philippos Nakas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intertech position performs unexpectedly, Philippos Nakas 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 Philippos Nakas will offset losses from the drop in Philippos Nakas' long position.| Intertech vs. Intracom Holdings SA | Intertech vs. Public Power | Intertech vs. Hellenic Petroleum SA | Intertech vs. National Bank of |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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