Correlation Between Nafpaktos Textile and Intertech
Can any of the company-specific risk be diversified away by investing in both Nafpaktos Textile 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 Nafpaktos Textile and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nafpaktos Textile Industry and Intertech SA Inter, you can compare the effects of market volatilities on Nafpaktos Textile 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 Nafpaktos Textile with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nafpaktos Textile and Intertech.
Diversification Opportunities for Nafpaktos Textile and Intertech
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nafpaktos and Intertech is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nafpaktos Textile Industry 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 Nafpaktos Textile 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 Nafpaktos Textile Industry 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 Nafpaktos Textile i.e., Nafpaktos Textile and Intertech go up and down completely randomly.
Pair Corralation between Nafpaktos Textile and Intertech
Assuming the 90 days trading horizon Nafpaktos Textile Industry is expected to under-perform the Intertech. In addition to that, Nafpaktos Textile is 1.63 times more volatile than Intertech SA Inter. It trades about -0.07 of its total potential returns per unit of risk. Intertech SA Inter is currently generating about 0.51 per unit of volatility. If you would invest 107.00 in Intertech SA Inter on October 14, 2024 and sell it today you would earn a total of 16.00 from holding Intertech SA Inter or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nafpaktos Textile Industry vs. Intertech SA Inter
Performance |
| Timeline |
| Nafpaktos Textile |
| Intertech SA Inter |
Nafpaktos Textile and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nafpaktos Textile and Intertech
The main advantage of trading using opposite Nafpaktos Textile and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nafpaktos Textile 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.| Nafpaktos Textile vs. Intertech SA Inter | Nafpaktos Textile vs. CPI Computer Peripherals | Nafpaktos Textile vs. As Commercial Industrial | Nafpaktos Textile 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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