Correlation Between Ktima Kostas and Intertech

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

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

Diversification Opportunities for Ktima Kostas and Intertech

-0.12

Correlation Coefficient

Ktima Kostas  Intertech

Good diversification

The 3 months correlation between Ktima and Intertech is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ktima Kostas Lazaridis 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 Ktima Kostas 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 Ktima Kostas Lazaridis 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 Ktima Kostas i.e., Ktima Kostas and Intertech go up and down completely randomly.

Pair Corralation between Ktima Kostas and Intertech

Assuming the 90 days trading horizon Ktima Kostas is expected to generate 335.6 times less return on investment than Intertech. But when comparing it to its historical volatility, Ktima Kostas Lazaridis is 1.12 times less risky than Intertech. It trades about 0.0 of its potential returns per unit of risk. Intertech SA Inter is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  105.00  in Intertech SA Inter on December 29, 2024 and sell it today you would earn a total of  9.00  from holding Intertech SA Inter or generate 8.57% return on investment over 90 days.

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

Ktima Kostas Lazaridis  vs.  Intertech SA Inter

Ktima Kostas Lazaridis

Risk-Adjusted Performance

Very Weak

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

Intertech SA Inter

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intertech SA Inter are ranked lower than 5 (%) 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 April 2025.

Pair Trading with Ktima Kostas and Intertech

The main advantage of trading using opposite Ktima Kostas and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ktima Kostas 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 Ktima Kostas Lazaridis 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.