Correlation Between Intersport Polska and Alta SA
Can any of the company-specific risk be diversified away by investing in both Intersport Polska and Alta 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 Intersport Polska and Alta SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intersport Polska SA and Alta SA, you can compare the effects of market volatilities on Intersport Polska and Alta 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 Intersport Polska with a short position of Alta SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Alta SA.
Diversification Opportunities for Intersport Polska and Alta SA
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intersport and Alta is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska SA and Alta SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta SA and Intersport Polska 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 Intersport Polska SA are associated (or correlated) with Alta SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta SA has no effect on the direction of Intersport Polska i.e., Intersport Polska and Alta SA go up and down completely randomly.
Pair Corralation between Intersport Polska and Alta SA
Assuming the 90 days trading horizon Intersport Polska SA is expected to under-perform the Alta SA. But the stock apears to be less risky and, when comparing its historical volatility, Intersport Polska SA is 1.07 times less risky than Alta SA. The stock trades about -0.01 of its potential returns per unit of risk. The Alta SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 154.00 in Alta SA on September 2, 2024 and sell it today you would earn a total of 81.00 from holding Alta SA or generate 52.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intersport Polska SA vs. Alta SA
Performance |
| Timeline |
| Intersport Polska |
| Alta SA |
Intersport Polska and Alta SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Alta SA
The main advantage of trading using opposite Intersport Polska and Alta SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska position performs unexpectedly, Alta 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 Alta SA will offset losses from the drop in Alta SA's long position.| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. CFI Holding 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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