Correlation Between Technical Olympic and Intertech
Can any of the company-specific risk be diversified away by investing in both Technical Olympic 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 Technical Olympic and Intertech 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 Intertech SA Inter, you can compare the effects of market volatilities on Technical Olympic 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 Technical Olympic with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technical Olympic and Intertech.
Diversification Opportunities for Technical Olympic and Intertech
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Technical and Intertech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Technical Olympic 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 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 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 Technical Olympic i.e., Technical Olympic and Intertech go up and down completely randomly.
Pair Corralation between Technical Olympic and Intertech
Assuming the 90 days trading horizon Technical Olympic SA is expected to generate 0.57 times more return on investment than Intertech. However, Technical Olympic SA is 1.76 times less risky than Intertech. It trades about 0.12 of its potential returns per unit of risk. Intertech SA Inter is currently generating about -0.06 per unit of risk. If you would invest 251.00 in Technical Olympic SA on November 5, 2024 and sell it today you would earn a total of 6.00 from holding Technical Olympic SA or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technical Olympic SA vs. Intertech SA Inter
Performance |
| Timeline |
| Technical Olympic |
| Intertech SA Inter |
Technical Olympic and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technical Olympic and Intertech
The main advantage of trading using opposite Technical Olympic and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technical Olympic 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.| Technical Olympic vs. Intertech SA Inter | Technical Olympic vs. Foodlink AE | Technical Olympic vs. Interlife General Insurance | Technical Olympic vs. Eurobank Ergasias Services |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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