Correlation Between Intracom Holdings and Avax SA
Can any of the company-specific risk be diversified away by investing in both Intracom Holdings and Avax SA 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 Intracom Holdings and Avax SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intracom Holdings SA and Avax SA, you can compare the effects of market volatilities on Intracom Holdings and Avax SA 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 Intracom Holdings with a short position of Avax SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Holdings and Avax SA.
Diversification Opportunities for Intracom Holdings and Avax SA
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intracom and Avax is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Holdings SA and Avax SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avax SA and Intracom Holdings 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 Intracom Holdings SA are associated (or correlated) with Avax SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avax SA has no effect on the direction of Intracom Holdings i.e., Intracom Holdings and Avax SA go up and down completely randomly.
Pair Corralation between Intracom Holdings and Avax SA
Assuming the 90 days trading horizon Intracom Holdings SA is expected to under-perform the Avax SA. But the stock apears to be less risky and, when comparing its historical volatility, Intracom Holdings SA is 1.0 times less risky than Avax SA. The stock trades about -0.07 of its potential returns per unit of risk. The Avax SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Avax SA on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Avax SA or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intracom Holdings SA vs. Avax SA
Performance |
| Timeline |
| Intracom Holdings |
| Avax SA |
Intracom Holdings and Avax SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Holdings and Avax SA
The main advantage of trading using opposite Intracom Holdings and Avax SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Holdings position performs unexpectedly, Avax SA 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 Avax SA will offset losses from the drop in Avax SA's long position.| Intracom Holdings vs. Intralot SA Integrated | Intracom Holdings vs. Mytilineos SA | Intracom Holdings vs. Public Power | Intracom Holdings vs. Hellenic Telecommunications Organization |
| Avax SA vs. Ellaktor SA | Avax SA vs. GEK TERNA Holdings | Avax SA vs. LAMDA Development SA | Avax SA 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |