Correlation Between Intracom Holdings and Intertech
Can any of the company-specific risk be diversified away by investing in both Intracom Holdings and Intertech 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 Intertech 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 Intertech SA Inter, you can compare the effects of market volatilities on Intracom Holdings and Intertech 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 Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Holdings and Intertech.
Diversification Opportunities for Intracom Holdings and Intertech
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intracom and Intertech is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Holdings SA and Intertech SA Inter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertech SA Inter 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 Intertech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertech SA Inter has no effect on the direction of Intracom Holdings i.e., Intracom Holdings and Intertech go up and down completely randomly.
Pair Corralation between Intracom Holdings and Intertech
Assuming the 90 days trading horizon Intracom Holdings SA is expected to generate 0.73 times more return on investment than Intertech. However, Intracom Holdings SA is 1.36 times less risky than Intertech. It trades about -0.13 of its potential returns per unit of risk. Intertech SA Inter is currently generating about -0.24 per unit of risk. If you would invest 280.00 in Intracom Holdings SA on August 27, 2024 and sell it today you would lose (15.00) from holding Intracom Holdings SA or give up 5.36% 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. Intertech SA Inter
Performance |
| Timeline |
| Intracom Holdings |
| Intertech SA Inter |
Intracom Holdings and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracom Holdings and Intertech
The main advantage of trading using opposite Intracom Holdings and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Holdings position performs unexpectedly, Intertech 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 Intertech will offset losses from the drop in Intertech'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 |
| Intertech vs. Intracom Holdings SA | Intertech vs. Public Power | Intertech vs. Hellenic Petroleum SA | Intertech vs. National Bank of |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |