Correlation Between Lampsa Hellenic and Intracom Constructions
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic 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 Lampsa Hellenic and Intracom Constructions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lampsa Hellenic Hotels and Intracom Constructions Societe, you can compare the effects of market volatilities on Lampsa Hellenic 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 Lampsa Hellenic with a short position of Intracom Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Intracom Constructions.
Diversification Opportunities for Lampsa Hellenic and Intracom Constructions
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lampsa and Intracom is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Intracom Constructions Societe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Constructions and Lampsa Hellenic 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 Lampsa Hellenic Hotels 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 Lampsa Hellenic i.e., Lampsa Hellenic and Intracom Constructions go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Intracom Constructions
Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.13 times more return on investment than Intracom Constructions. However, Lampsa Hellenic Hotels is 7.88 times less risky than Intracom Constructions. It trades about 0.0 of its potential returns per unit of risk. Intracom Constructions Societe is currently generating about -0.16 per unit of risk. If you would invest 3,740 in Lampsa Hellenic Hotels on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Lampsa Hellenic Hotels or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. Intracom Constructions Societe
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| Intracom Constructions |
Lampsa Hellenic and Intracom Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and Intracom Constructions
The main advantage of trading using opposite Lampsa Hellenic and Intracom Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic 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.| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. EL D Mouzakis | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Alpha Trust Mutual |
| Intracom Constructions vs. Mytilineos SA | Intracom Constructions vs. Intracom Holdings SA | Intracom Constructions vs. Ellaktor SA | Intracom Constructions vs. GEK TERNA Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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