Correlation Between Public Power and Intertech
Can any of the company-specific risk be diversified away by investing in both Public Power 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 Public Power and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Power and Intertech SA Inter, you can compare the effects of market volatilities on Public Power 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 Public Power with a short position of Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Power and Intertech.
Diversification Opportunities for Public Power and Intertech
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Public and Intertech is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Public Power 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 Public Power 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 Public Power 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 Public Power i.e., Public Power and Intertech go up and down completely randomly.
Pair Corralation between Public Power and Intertech
Assuming the 90 days trading horizon Public Power is expected to generate 0.77 times more return on investment than Intertech. However, Public Power is 1.3 times less risky than Intertech. It trades about 0.03 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 1,107 in Public Power on August 30, 2024 and sell it today you would earn a total of 51.00 from holding Public Power or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Power vs. Intertech SA Inter
Performance |
| Timeline |
| Public Power |
| Intertech SA Inter |
Public Power and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Power and Intertech
The main advantage of trading using opposite Public Power and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Power 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.| Public Power vs. Mytilineos SA | Public Power vs. Greek Organization of | Public Power vs. Hellenic Telecommunications Organization | Public Power vs. Alpha Services and |
| Intertech vs. Intracom Holdings SA | Intertech vs. Public Power | Intertech vs. Hellenic Petroleum SA | Intertech vs. National Bank of |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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