Correlation Between Intracom Constructions and Mytilineos

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

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

Diversification Opportunities for Intracom Constructions and Mytilineos

0.59

Correlation Coefficient

Intracom Constructions  Mytilineos

Very weak diversification

The 3 months correlation between Intracom and Mytilineos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intracom Constructions Societe and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and Intracom Constructions 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 Intracom Constructions Societe are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Intracom Constructions i.e., Intracom Constructions and Mytilineos go up and down completely randomly.

Pair Corralation between Intracom Constructions and Mytilineos

Assuming the 90 days trading horizon Intracom Constructions Societe is expected to generate 0.92 times more return on investment than Mytilineos. However, Intracom Constructions Societe is 1.09 times less risky than Mytilineos. It trades about 0.22 of its potential returns per unit of risk. Mytilineos SA is currently generating about 0.16 per unit of risk. If you would invest  517.00  in Intracom Constructions Societe on May 2, 2025 and sell it today you would earn a total of  101.00  from holding Intracom Constructions Societe or generate 19.54% return on investment over 90 days.

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

Intracom Constructions Societe  vs.  Mytilineos SA

Intracom Constructions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intracom Constructions Societe are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intracom Constructions sustained solid returns over the last few months and may actually be approaching a breakup point.

Mytilineos SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mytilineos SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mytilineos sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intracom Constructions and Mytilineos

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

The idea behind Intracom Constructions Societe and Mytilineos SA 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.