Correlation Between Intertek Group and GDI Integrated

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

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

Diversification Opportunities for Intertek Group and GDI Integrated

0.16

Correlation Coefficient

Intertek Group  GDI Integrated

Average diversification

The 3 months correlation between Intertek and GDI is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Intertek Group Plc and GDI Integrated Facility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDI Integrated Facility and Intertek Group 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 Intertek Group Plc are associated (or correlated) with GDI Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDI Integrated Facility has no effect on the direction of Intertek Group i.e., Intertek Group and GDI Integrated go up and down completely randomly.

Pair Corralation between Intertek Group and GDI Integrated

Assuming the 90 days horizon Intertek Group Plc is expected to generate 0.5 times more return on investment than GDI Integrated. However, Intertek Group Plc is 1.98 times less risky than GDI Integrated. It trades about 0.01 of its potential returns per unit of risk. GDI Integrated Facility is currently generating about -0.03 per unit of risk. If you would invest  6,462  in Intertek Group Plc on July 16, 2025 and sell it today you would earn a total of  22.00  from holding Intertek Group Plc or generate 0.34% return on investment over 90 days.

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

Intertek Group Plc  vs.  GDI Integrated Facility

Intertek Group Plc

Risk-Adjusted Performance

Weak

Over the last 90 days Intertek Group Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Intertek Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

GDI Integrated Facility

Risk-Adjusted Performance

Weakest

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

Pair Trading with Intertek Group and GDI Integrated

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

The idea behind Intertek Group Plc and GDI Integrated Facility 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.