Correlation Between Hellenic Petroleum and Intralot

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

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

Diversification Opportunities for Hellenic Petroleum and Intralot

0.7

Correlation Coefficient

Hellenic Petroleum  Intralot

Poor diversification

The 3 months correlation between Hellenic and Intralot is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Petroleum 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 Hellenic Petroleum 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 Hellenic Petroleum 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 Hellenic Petroleum i.e., Hellenic Petroleum and Intralot go up and down completely randomly.

Pair Corralation between Hellenic Petroleum and Intralot

Assuming the 90 days trading horizon Hellenic Petroleum SA is expected to generate 0.57 times more return on investment than Intralot. However, Hellenic Petroleum SA is 1.74 times less risky than Intralot. It trades about 0.01 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about -0.11 per unit of risk. If you would invest  696.00  in Hellenic Petroleum SA on September 12, 2024 and sell it today you would earn a total of  4.00  from holding Hellenic Petroleum SA or generate 0.57% return on investment over 90 days.

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

Hellenic Petroleum SA  vs.  Intralot SA Integrated

Hellenic Petroleum

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hellenic Petroleum SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Hellenic Petroleum is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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 uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hellenic Petroleum and Intralot

The main advantage of trading using opposite Hellenic Petroleum and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Petroleum 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 Hellenic Petroleum 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.