Correlation Between Intralot and Hellenic Petroleum

Can any of the company-specific risk be diversified away by investing in both Intralot and Hellenic Petroleum 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 Intralot and Hellenic Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intralot SA Integrated and Hellenic Petroleum SA, you can compare the effects of market volatilities on Intralot and Hellenic Petroleum 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 Intralot with a short position of Hellenic Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intralot and Hellenic Petroleum.

Diversification Opportunities for Intralot and Hellenic Petroleum

0.38

Correlation Coefficient

Intralot  Hellenic Petroleum

Weak diversification

The 3 months correlation between Intralot and Hellenic is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated and Hellenic Petroleum SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Petroleum and Intralot 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 Intralot SA Integrated are associated (or correlated) with Hellenic Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Petroleum has no effect on the direction of Intralot i.e., Intralot and Hellenic Petroleum go up and down completely randomly.

Pair Corralation between Intralot and Hellenic Petroleum

Assuming the 90 days trading horizon Intralot SA Integrated is expected to generate 1.8 times more return on investment than Hellenic Petroleum. However, Intralot is 1.8 times more volatile than Hellenic Petroleum SA. It trades about 0.12 of its potential returns per unit of risk. Hellenic Petroleum SA is currently generating about 0.01 per unit of risk. If you would invest  60.00  in Intralot SA Integrated on April 2, 2024 and sell it today you would earn a total of  58.00  from holding Intralot SA Integrated or generate 96.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intralot SA Integrated  vs.  Hellenic Petroleum SA

Intralot SA Integrated

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intralot SA Integrated are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Intralot is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Hellenic Petroleum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hellenic Petroleum SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Hellenic Petroleum is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Intralot and Hellenic Petroleum

The main advantage of trading using opposite Intralot and Hellenic Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intralot position performs unexpectedly, Hellenic Petroleum 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 Hellenic Petroleum will offset losses from the drop in Hellenic Petroleum's long position.

The idea behind Intralot SA Integrated and Hellenic Petroleum SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.