Correlation Between Intema Solutions and Entain Plc

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

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

Diversification Opportunities for Intema Solutions and Entain Plc

0.0

Correlation Coefficient

Intema Solutions  Entain Plc

Pay attention - limited upside

The 3 months correlation between Intema and Entain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intema Solutions and Entain Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entain Plc and Intema Solutions 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 Intema Solutions are associated (or correlated) with Entain Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entain Plc has no effect on the direction of Intema Solutions i.e., Intema Solutions and Entain Plc go up and down completely randomly.

Pair Corralation between Intema Solutions and Entain Plc

If you would invest  985.00  in Entain Plc on September 13, 2024 and sell it today you would earn a total of  37.00  from holding Entain Plc or generate 3.76% return on investment over 90 days.

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

Intema Solutions  vs.  Entain Plc

Intema Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intema Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Intema Solutions is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Entain Plc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Entain Plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Entain Plc may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Intema Solutions and Entain Plc

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

The idea behind Intema Solutions and Entain Plc 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.

Check out your portfolio center.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .