Correlation Between Intertech and Optronics Technologies
Can any of the company-specific risk be diversified away by investing in both Intertech and Optronics Technologies 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 Optronics Technologies 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 Optronics Technologies SA, you can compare the effects of market volatilities on Intertech and Optronics Technologies 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 Optronics Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intertech and Optronics Technologies.
Diversification Opportunities for Intertech and Optronics Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intertech and Optronics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intertech SA Inter and Optronics Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optronics Technologies 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 Optronics Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optronics Technologies has no effect on the direction of Intertech i.e., Intertech and Optronics Technologies go up and down completely randomly.
Pair Corralation between Intertech and Optronics Technologies
Assuming the 90 days trading horizon Intertech SA Inter is expected to generate 1.11 times more return on investment than Optronics Technologies. However, Intertech is 1.11 times more volatile than Optronics Technologies SA. It trades about 0.01 of its potential returns per unit of risk. Optronics Technologies SA is currently generating about -0.03 per unit of risk. If you would invest 113.00 in Intertech SA Inter on November 5, 2024 and sell it today you would earn a total of 2.00 from holding Intertech SA Inter or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Intertech SA Inter vs. Optronics Technologies SA
Performance |
| Timeline |
| Intertech SA Inter |
| Optronics Technologies |
Intertech and Optronics Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intertech and Optronics Technologies
The main advantage of trading using opposite Intertech and Optronics Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intertech position performs unexpectedly, Optronics Technologies 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 Optronics Technologies will offset losses from the drop in Optronics Technologies' long position.| Intertech vs. Unibios Holdings SA | Intertech vs. Intracom Holdings SA | Intertech vs. Ideal Group SA | Intertech vs. Public Power |
| Optronics Technologies vs. Intertech SA Inter | Optronics Technologies vs. Eurobank Ergasias Services | Optronics Technologies vs. Foodlink AE | Optronics Technologies vs. Performance Technologies SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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