Correlation Between N Leventeris and Intralot

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

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

Diversification Opportunities for N Leventeris and Intralot

-0.63

Correlation Coefficient

N Leventeris  Intralot

Excellent diversification

The 3 months correlation between LEBEP and Intralot is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris 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 N Leventeris 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 N Leventeris 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 N Leventeris i.e., N Leventeris and Intralot go up and down completely randomly.

Pair Corralation between N Leventeris and Intralot

Assuming the 90 days trading horizon N Leventeris SA is expected to generate 3.74 times more return on investment than Intralot. However, N Leventeris is 3.74 times more volatile than Intralot SA Integrated. It trades about 0.03 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about -0.1 per unit of risk. If you would invest  27.00  in N Leventeris SA on September 15, 2024 and sell it today you would lose (1.00) from holding N Leventeris SA or give up 3.7% of portfolio value over 90 days.

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

N Leventeris SA  vs.  Intralot SA Integrated

N Leventeris SA

Risk-Adjusted Performance

2 of 100

Weak

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

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 latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with N Leventeris and Intralot

The main advantage of trading using opposite N Leventeris and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris 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 N Leventeris 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.