Correlation Between Optronics Technologies and Interlife General
Can any of the company-specific risk be diversified away by investing in both Optronics Technologies and Interlife General 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 Optronics Technologies and Interlife General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optronics Technologies SA and Interlife General Insurance, you can compare the effects of market volatilities on Optronics Technologies and Interlife General 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 Optronics Technologies with a short position of Interlife General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optronics Technologies and Interlife General.
Diversification Opportunities for Optronics Technologies and Interlife General
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optronics and Interlife is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Optronics Technologies SA and Interlife General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlife General and Optronics Technologies 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 Optronics Technologies SA are associated (or correlated) with Interlife General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlife General has no effect on the direction of Optronics Technologies i.e., Optronics Technologies and Interlife General go up and down completely randomly.
Pair Corralation between Optronics Technologies and Interlife General
If you would invest 148.00 in Optronics Technologies SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Optronics Technologies SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optronics Technologies SA vs. Interlife General Insurance
Performance |
| Timeline |
| Optronics Technologies |
| Interlife General |
Optronics Technologies and Interlife General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optronics Technologies and Interlife General
The main advantage of trading using opposite Optronics Technologies and Interlife General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optronics Technologies position performs unexpectedly, Interlife General 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 Interlife General will offset losses from the drop in Interlife General's long position.| Optronics Technologies vs. Admie Holding SA | Optronics Technologies vs. Coca Cola HBC AG | Optronics Technologies vs. Quest Holdings SA | Optronics Technologies vs. Motor Oil Corinth |
| Interlife General vs. Admie Holding SA | Interlife General vs. Coca Cola HBC AG | Interlife General vs. Quest Holdings SA | Interlife General vs. Motor Oil Corinth |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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