Correlation Between Lanakam SA and Intertech
Can any of the company-specific risk be diversified away by investing in both Lanakam SA 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 Lanakam SA and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lanakam SA and Intertech SA Inter, you can compare the effects of market volatilities on Lanakam SA 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 Lanakam SA with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanakam SA and Intertech.
Diversification Opportunities for Lanakam SA and Intertech
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lanakam and Intertech is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Lanakam 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 Lanakam SA 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 Lanakam 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 Lanakam SA i.e., Lanakam SA and Intertech go up and down completely randomly.
Pair Corralation between Lanakam SA and Intertech
Assuming the 90 days trading horizon Lanakam SA is expected to generate 1.11 times less return on investment than Intertech. In addition to that, Lanakam SA is 1.06 times more volatile than Intertech SA Inter. It trades about 0.02 of its total potential returns per unit of risk. Intertech SA Inter is currently generating about 0.02 per unit of volatility. If you would invest 106.00 in Intertech SA Inter on October 25, 2024 and sell it today you would earn a total of 9.00 from holding Intertech SA Inter or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lanakam SA vs. Intertech SA Inter
Performance |
| Timeline |
| Lanakam SA |
| Intertech SA Inter |
Lanakam SA and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanakam SA and Intertech
The main advantage of trading using opposite Lanakam SA and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanakam SA 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.| Lanakam SA vs. Intertech SA Inter | Lanakam SA vs. National Bank of | Lanakam SA vs. Athens Medical CSA | Lanakam SA vs. Profile Systems Software |
| Intertech vs. Unibios Holdings SA | Intertech vs. Intracom Holdings SA | Intertech vs. Ideal Group SA | Intertech vs. Public Power |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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