Correlation Between Intralot and Autohellas

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

Diversification Opportunities for Intralot and Autohellas

0.51

Correlation Coefficient

Intralot  Autohellas

Very weak diversification

The 3 months correlation between Intralot and Autohellas is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas 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 Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of Intralot i.e., Intralot and Autohellas go up and down completely randomly.

Pair Corralation between Intralot and Autohellas

Assuming the 90 days trading horizon Intralot SA Integrated is expected to under-perform the Autohellas. In addition to that, Intralot is 1.42 times more volatile than Autohellas SA. It trades about -0.01 of its total potential returns per unit of risk. Autohellas SA is currently generating about 0.04 per unit of volatility. If you would invest  1,038  in Autohellas SA on October 9, 2024 and sell it today you would earn a total of  30.00  from holding Autohellas SA or generate 2.89% return on investment over 90 days.

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

Intralot SA Integrated  vs.  Autohellas 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 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.

Autohellas SA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Autohellas SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Autohellas 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 Autohellas

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

The idea behind Intralot SA Integrated and Autohellas 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.