Correlation Between Intracom Holdings and Elvalhalcor Hellenic

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Can any of the company-specific risk be diversified away by investing in both Intracom Holdings and Elvalhalcor Hellenic 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 Intracom Holdings and Elvalhalcor Hellenic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intracom Holdings SA and Elvalhalcor Hellenic Copper, you can compare the effects of market volatilities on Intracom Holdings and Elvalhalcor Hellenic 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 Intracom Holdings with a short position of Elvalhalcor Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracom Holdings and Elvalhalcor Hellenic.

Diversification Opportunities for Intracom Holdings and Elvalhalcor Hellenic

0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Intracom and Elvalhalcor is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Holdings SA and Elvalhalcor Hellenic Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elvalhalcor Hellenic and Intracom Holdings 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 Intracom Holdings SA are associated (or correlated) with Elvalhalcor Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elvalhalcor Hellenic has no effect on the direction of Intracom Holdings i.e., Intracom Holdings and Elvalhalcor Hellenic go up and down completely randomly.

Pair Corralation between Intracom Holdings and Elvalhalcor Hellenic

Assuming the 90 days trading horizon Intracom Holdings SA is expected to under-perform the Elvalhalcor Hellenic. In addition to that, Intracom Holdings is 2.37 times more volatile than Elvalhalcor Hellenic Copper. It trades about -0.15 of its total potential returns per unit of risk. Elvalhalcor Hellenic Copper is currently generating about -0.24 per unit of volatility. If you would invest  192.00  in Elvalhalcor Hellenic Copper on March 28, 2024 and sell it today you would lose (13.00) from holding Elvalhalcor Hellenic Copper or give up 6.77% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Intracom Holdings SA  vs.  Elvalhalcor Hellenic Copper

 Performance 
       Timeline  
Intracom Holdings 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Intracom Holdings SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Elvalhalcor Hellenic 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Elvalhalcor Hellenic Copper has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Intracom Holdings and Elvalhalcor Hellenic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intracom Holdings and Elvalhalcor Hellenic

The main advantage of trading using opposite Intracom Holdings and Elvalhalcor Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracom Holdings position performs unexpectedly, Elvalhalcor Hellenic 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 Elvalhalcor Hellenic will offset losses from the drop in Elvalhalcor Hellenic's long position.
The idea behind Intracom Holdings SA and Elvalhalcor Hellenic Copper 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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