Correlation Between Motor Oil and Intralot
Can any of the company-specific risk be diversified away by investing in both Motor Oil 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 Motor Oil and Intralot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Motor Oil Corinth and Intralot SA Integrated, you can compare the effects of market volatilities on Motor Oil 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 Motor Oil with a short position of Intralot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motor Oil and Intralot.
Diversification Opportunities for Motor Oil and Intralot
Very poor diversification
The 3 months correlation between Motor and Intralot is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Motor Oil Corinth 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 Motor Oil 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 Motor Oil Corinth 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 Motor Oil i.e., Motor Oil and Intralot go up and down completely randomly.
Pair Corralation between Motor Oil and Intralot
Assuming the 90 days trading horizon Motor Oil Corinth is expected to generate 0.57 times more return on investment than Intralot. However, Motor Oil Corinth is 1.76 times less risky than Intralot. It trades about -0.2 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 2,034 in Motor Oil Corinth on August 25, 2024 and sell it today you would lose (114.00) from holding Motor Oil Corinth or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Motor Oil Corinth vs. Intralot SA Integrated
Performance |
| Timeline |
| Motor Oil Corinth |
| Intralot SA Integrated |
Motor Oil and Intralot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Motor Oil and Intralot
The main advantage of trading using opposite Motor Oil and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motor Oil 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.| Motor Oil vs. Mytilineos SA | Motor Oil vs. Hellenic Petroleum SA | Motor Oil vs. Greek Organization of | Motor Oil 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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