Correlation Between Titan Cement and Intralot
Can any of the company-specific risk be diversified away by investing in both Titan Cement and Intralot 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 Titan Cement and Intralot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Cement International and Intralot SA Integrated, you can compare the effects of market volatilities on Titan Cement and Intralot 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 Titan Cement with a short position of Intralot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Cement and Intralot.
Diversification Opportunities for Titan Cement and Intralot
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Titan and Intralot is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Titan Cement International and Intralot SA Integrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intralot SA Integrated and Titan Cement 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 Titan Cement International are associated (or correlated) with Intralot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intralot SA Integrated has no effect on the direction of Titan Cement i.e., Titan Cement and Intralot go up and down completely randomly.
Pair Corralation between Titan Cement and Intralot
Assuming the 90 days trading horizon Titan Cement International is expected to generate 0.76 times more return on investment than Intralot. However, Titan Cement International is 1.31 times less risky than Intralot. It trades about 0.48 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about -0.2 per unit of risk. If you would invest 3,225 in Titan Cement International on August 31, 2024 and sell it today you would earn a total of 675.00 from holding Titan Cement International or generate 20.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan Cement International vs. Intralot SA Integrated
Performance |
| Timeline |
| Titan Cement Interna |
| Intralot SA Integrated |
Titan Cement and Intralot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan Cement and Intralot
The main advantage of trading using opposite Titan Cement and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Cement position performs unexpectedly, Intralot 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 Intralot will offset losses from the drop in Intralot's long position.| Titan Cement vs. Lampsa Hellenic Hotels | Titan Cement vs. CPI Computer Peripherals | Titan Cement vs. Eurobank Ergasias Services | Titan Cement vs. Technical Olympic SA |
| Intralot vs. Greek Organization of | Intralot vs. Public Power | Intralot vs. Mytilineos SA | Intralot vs. Hellenic Telecommunications Organization |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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