Correlation Between Intralot and Attica Holdings

Can any of the company-specific risk be diversified away by investing in both Intralot and Attica 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 Intralot and Attica Holdings 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 Attica Holdings SA, you can compare the effects of market volatilities on Intralot and Attica 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 Intralot with a short position of Attica Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intralot and Attica Holdings.

Diversification Opportunities for Intralot and Attica Holdings

0.69

Correlation Coefficient

Intralot  Attica Holdings

Poor diversification

The 3 months correlation between Intralot and Attica is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated and Attica Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Holdings SA 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 Attica Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attica Holdings SA has no effect on the direction of Intralot i.e., Intralot and Attica Holdings go up and down completely randomly.

Pair Corralation between Intralot and Attica Holdings

Assuming the 90 days trading horizon Intralot SA Integrated is expected to under-perform the Attica Holdings. In addition to that, Intralot is 1.24 times more volatile than Attica Holdings SA. It trades about -0.11 of its total potential returns per unit of risk. Attica Holdings SA is currently generating about 0.0 per unit of volatility. If you would invest  229.00  in Attica Holdings SA on September 12, 2024 and sell it today you would lose (1.00) from holding Attica Holdings SA or give up 0.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Intralot SA Integrated  vs.  Attica Holdings SA

Intralot SA Integrated

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intralot SA Integrated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Attica Holdings SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Attica Holdings SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Attica Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intralot and Attica Holdings

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

The idea behind Intralot SA Integrated and Attica Holdings 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.