Correlation Between IKloukinas ILappas and Intertech

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

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

Diversification Opportunities for IKloukinas ILappas and Intertech

0.33

Correlation Coefficient

IKloukinas ILappas  Intertech

Weak diversification

The 3 months correlation between IKloukinas and Intertech is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding IKloukinas ILappas SA and Intertech SA Inter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertech SA Inter and IKloukinas ILappas 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 IKloukinas ILappas SA are associated (or correlated) with Intertech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertech SA Inter has no effect on the direction of IKloukinas ILappas i.e., IKloukinas ILappas and Intertech go up and down completely randomly.

Pair Corralation between IKloukinas ILappas and Intertech

Assuming the 90 days trading horizon IKloukinas ILappas SA is expected to under-perform the Intertech. But the stock apears to be less risky and, when comparing its historical volatility, IKloukinas ILappas SA is 1.74 times less risky than Intertech. The stock trades about -0.06 of its potential returns per unit of risk. The Intertech SA Inter is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  110.00  in Intertech SA Inter on October 25, 2024 and sell it today you would earn a total of  5.00  from holding Intertech SA Inter or generate 4.55% return on investment over 90 days.

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

IKloukinas ILappas SA  vs.  Intertech SA Inter

IKloukinas ILappas

Risk-Adjusted Performance

0 of 100

Very Weak

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

Intertech SA Inter

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intertech SA Inter are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intertech may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with IKloukinas ILappas and Intertech

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

The idea behind IKloukinas ILappas SA and Intertech SA Inter 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 Global Correlations module to find global opportunities by holding instruments from different markets.