Correlation Between Intracom Holdings and Domiki Kritis
Can any of the company-specific risk be diversified away by investing in both Intracom Holdings and Domiki Kritis 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 Domiki Kritis 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 Domiki Kritis SA, you can compare the effects of market volatilities on Intracom Holdings and Domiki Kritis 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 Domiki Kritis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Holdings and Domiki Kritis.
Diversification Opportunities for Intracom Holdings and Domiki Kritis
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intracom and Domiki is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Holdings SA and Domiki Kritis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domiki Kritis 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 Domiki Kritis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domiki Kritis SA has no effect on the direction of Intracom Holdings i.e., Intracom Holdings and Domiki Kritis go up and down completely randomly.
Pair Corralation between Intracom Holdings and Domiki Kritis
Assuming the 90 days trading horizon Intracom Holdings SA is expected to under-perform the Domiki Kritis. But the stock apears to be less risky and, when comparing its historical volatility, Intracom Holdings SA is 1.47 times less risky than Domiki Kritis. The stock trades about -0.09 of its potential returns per unit of risk. The Domiki Kritis SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Domiki Kritis SA on September 2, 2024 and sell it today you would earn a total of 19.00 from holding Domiki Kritis SA or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intracom Holdings SA vs. Domiki Kritis SA
Performance |
| Timeline |
| Intracom Holdings |
| Domiki Kritis SA |
Intracom Holdings and Domiki Kritis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Holdings and Domiki Kritis
The main advantage of trading using opposite Intracom Holdings and Domiki Kritis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Holdings position performs unexpectedly, Domiki Kritis 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 Domiki Kritis will offset losses from the drop in Domiki Kritis' long position.| Intracom Holdings vs. Intralot SA Integrated | Intracom Holdings vs. Mytilineos SA | Intracom Holdings vs. Public Power | Intracom Holdings vs. Hellenic Telecommunications Organization |
| Domiki Kritis vs. Intracom Holdings SA | Domiki Kritis vs. Intralot SA Integrated | Domiki Kritis vs. Intracom Constructions Societe | Domiki Kritis vs. Ekter 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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