Correlation Between Elvalhalcor Hellenic and Intracom Holdings
Can any of the company-specific risk be diversified away by investing in both Elvalhalcor Hellenic and Intracom Holdings 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 Elvalhalcor Hellenic and Intracom Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elvalhalcor Hellenic Copper and Intracom Holdings SA, you can compare the effects of market volatilities on Elvalhalcor Hellenic and Intracom Holdings 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 Elvalhalcor Hellenic with a short position of Intracom Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elvalhalcor Hellenic and Intracom Holdings.
Diversification Opportunities for Elvalhalcor Hellenic and Intracom Holdings
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elvalhalcor and Intracom is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and Intracom Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Holdings and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper are associated (or correlated) with Intracom Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracom Holdings has no effect on the direction of Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and Intracom Holdings go up and down completely randomly.
Pair Corralation between Elvalhalcor Hellenic and Intracom Holdings
Assuming the 90 days trading horizon Elvalhalcor Hellenic Copper is expected to generate 0.85 times more return on investment than Intracom Holdings. However, Elvalhalcor Hellenic Copper is 1.17 times less risky than Intracom Holdings. It trades about 0.15 of its potential returns per unit of risk. Intracom Holdings SA is currently generating about -0.03 per unit of risk. If you would invest 184.00 in Elvalhalcor Hellenic Copper on June 29, 2024 and sell it today you would earn a total of 9.00 from holding Elvalhalcor Hellenic Copper or generate 4.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Elvalhalcor Hellenic Copper vs. Intracom Holdings SA
Performance |
Timeline |
Elvalhalcor Hellenic |
Intracom Holdings |
Elvalhalcor Hellenic and Intracom Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elvalhalcor Hellenic and Intracom Holdings
The main advantage of trading using opposite Elvalhalcor Hellenic and Intracom Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elvalhalcor Hellenic position performs unexpectedly, Intracom Holdings 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 Holdings will offset losses from the drop in Intracom Holdings' long position.Elvalhalcor Hellenic vs. Mytilineos SA | Elvalhalcor Hellenic vs. Motor Oil Corinth | Elvalhalcor Hellenic vs. Hellenic Petroleum SA | Elvalhalcor Hellenic vs. National Bank of |
Intracom Holdings vs. Intralot SA Integrated | Intracom Holdings vs. Mytilineos SA | Intracom Holdings vs. Public Power | Intracom Holdings 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |