Correlation Between Technical Olympic and Intracom Constructions
Can any of the company-specific risk be diversified away by investing in both Technical Olympic 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 Technical Olympic and Intracom Constructions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technical Olympic SA and Intracom Constructions Societe, you can compare the effects of market volatilities on Technical Olympic 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 Technical Olympic with a short position of Intracom Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technical Olympic and Intracom Constructions.
Diversification Opportunities for Technical Olympic and Intracom Constructions
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Technical and Intracom is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Technical Olympic SA and Intracom Constructions Societe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Constructions and Technical Olympic 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 Technical Olympic SA 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 Technical Olympic i.e., Technical Olympic and Intracom Constructions go up and down completely randomly.
Pair Corralation between Technical Olympic and Intracom Constructions
Assuming the 90 days trading horizon Technical Olympic SA is expected to under-perform the Intracom Constructions. In addition to that, Technical Olympic is 1.19 times more volatile than Intracom Constructions Societe. It trades about -0.1 of its total potential returns per unit of risk. Intracom Constructions Societe is currently generating about -0.06 per unit of volatility. If you would invest 539.00 in Intracom Constructions Societe on September 3, 2024 and sell it today you would lose (55.00) from holding Intracom Constructions Societe or give up 10.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technical Olympic SA vs. Intracom Constructions Societe
Performance |
| Timeline |
| Technical Olympic |
| Intracom Constructions |
Technical Olympic and Intracom Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technical Olympic and Intracom Constructions
The main advantage of trading using opposite Technical Olympic and Intracom Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technical Olympic 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.| Technical Olympic vs. GEK TERNA Holdings | Technical Olympic vs. Avax SA | Technical Olympic vs. IKloukinas ILappas SA | Technical Olympic vs. Proodeftiki SA |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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