Correlation Between Autohellas and Intralot

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

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

Diversification Opportunities for Autohellas and Intralot

0.45

Correlation Coefficient

Autohellas  Intralot

Very weak diversification

The 3 months correlation between Autohellas and Intralot is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and Intralot SA Integrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intralot SA Integrated and Autohellas 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 Autohellas SA are associated (or correlated) with Intralot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intralot SA Integrated has no effect on the direction of Autohellas i.e., Autohellas and Intralot go up and down completely randomly.

Pair Corralation between Autohellas and Intralot

Assuming the 90 days trading horizon Autohellas SA is expected to generate 0.97 times more return on investment than Intralot. However, Autohellas SA is 1.03 times less risky than Intralot. It trades about 0.22 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about 0.05 per unit of risk. If you would invest  1,038  in Autohellas SA on December 26, 2024 and sell it today you would earn a total of  214.00  from holding Autohellas SA or generate 20.62% return on investment over 90 days.

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

Autohellas SA  vs.  Intralot SA Integrated

Autohellas SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Autohellas SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Autohellas sustained solid returns over the last few months and may actually be approaching a breakup point.

Intralot SA Integrated

Risk-Adjusted Performance

Insignificant

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

Pair Trading with Autohellas and Intralot

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

The idea behind Autohellas SA and Intralot SA Integrated 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.