Correlation Between Intracom Holdings and Intralot
Can any of the company-specific risk be diversified away by investing in both Intracom Holdings and Intralot 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 Intralot 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 Intralot SA Integrated, you can compare the effects of market volatilities on Intracom Holdings and Intralot 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 Intralot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Holdings and Intralot.
Diversification Opportunities for Intracom Holdings and Intralot
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intracom and Intralot is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Holdings SA and Intralot SA Integrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intralot SA Integrated 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 Intralot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intralot SA Integrated has no effect on the direction of Intracom Holdings i.e., Intracom Holdings and Intralot go up and down completely randomly.
Pair Corralation between Intracom Holdings and Intralot
Assuming the 90 days trading horizon Intracom Holdings SA is expected to generate 0.85 times more return on investment than Intralot. However, Intracom Holdings SA is 1.18 times less risky than Intralot. It trades about -0.15 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about -0.38 per unit of risk. If you would invest 283.00 in Intracom Holdings SA on August 25, 2024 and sell it today you would lose (18.00) from holding Intracom Holdings SA or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intracom Holdings SA vs. Intralot SA Integrated
Performance |
| Timeline |
| Intracom Holdings |
| Intralot SA Integrated |
Intracom Holdings and Intralot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Holdings and Intralot
The main advantage of trading using opposite Intracom Holdings and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Holdings position performs unexpectedly, Intralot 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 Intralot will offset losses from the drop in Intralot'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 |
| Intralot vs. Greek Organization of | Intralot vs. Public Power | Intralot vs. Mytilineos SA | Intralot vs. Hellenic Telecommunications Organization |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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