Correlation Between Intracom Holdings and Intracom Constructions
Can any of the company-specific risk be diversified away by investing in both Intracom Holdings and Intracom Constructions 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 Intracom Constructions 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 Intracom Constructions Societe, you can compare the effects of market volatilities on Intracom Holdings and Intracom Constructions 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 Intracom Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Holdings and Intracom Constructions.
Diversification Opportunities for Intracom Holdings and Intracom Constructions
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intracom and Intracom is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Holdings SA and Intracom Constructions Societe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Constructions 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 Intracom Constructions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracom Constructions has no effect on the direction of Intracom Holdings i.e., Intracom Holdings and Intracom Constructions go up and down completely randomly.
Pair Corralation between Intracom Holdings and Intracom Constructions
Assuming the 90 days trading horizon Intracom Holdings SA is expected to generate 1.63 times more return on investment than Intracom Constructions. However, Intracom Holdings is 1.63 times more volatile than Intracom Constructions Societe. It trades about -0.06 of its potential returns per unit of risk. Intracom Constructions Societe is currently generating about -0.13 per unit of risk. If you would invest 280.00 in Intracom Holdings SA on August 28, 2024 and sell it today you would lose (9.00) from holding Intracom Holdings SA or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intracom Holdings SA vs. Intracom Constructions Societe
Performance |
| Timeline |
| Intracom Holdings |
| Intracom Constructions |
Intracom Holdings and Intracom Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Holdings and Intracom Constructions
The main advantage of trading using opposite Intracom Holdings and Intracom Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Holdings position performs unexpectedly, Intracom Constructions 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 Intracom Constructions will offset losses from the drop in Intracom Constructions' long position.| Intracom Holdings vs. Intralot SA Integrated | Intracom Holdings vs. Mytilineos SA | Intracom Holdings vs. Public Power | Intracom Holdings vs. Hellenic Telecommunications Organization |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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