Correlation Between Piraeus Port and Intralot

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

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

Diversification Opportunities for Piraeus Port and Intralot

0.27

Correlation Coefficient

Piraeus Port  Intralot

Modest diversification

The 3 months correlation between Piraeus and Intralot is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Port Authority 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 Piraeus Port 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 Piraeus Port Authority 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 Piraeus Port i.e., Piraeus Port and Intralot go up and down completely randomly.

Pair Corralation between Piraeus Port and Intralot

Assuming the 90 days trading horizon Piraeus Port is expected to generate 2.74 times less return on investment than Intralot. But when comparing it to its historical volatility, Piraeus Port Authority is 1.13 times less risky than Intralot. It trades about 0.05 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  92.00  in Intralot SA Integrated on December 3, 2024 and sell it today you would earn a total of  10.00  from holding Intralot SA Integrated or generate 10.87% return on investment over 90 days.

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

Piraeus Port Authority  vs.  Intralot SA Integrated

Piraeus Port Authority

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Piraeus Port Authority are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Piraeus Port is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Intralot SA Integrated

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intralot SA Integrated are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Intralot may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Piraeus Port and Intralot

The main advantage of trading using opposite Piraeus Port and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Port 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 Piraeus Port Authority 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.