Correlation Between Intertech and Metlen Energy

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

By analyzing existing cross correlation between Intertech SA Inter and Metlen Energy Metals, you can compare the effects of market volatilities on Intertech and Metlen Energy 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 Intertech with a short position of Metlen Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intertech and Metlen Energy.

Diversification Opportunities for Intertech and Metlen Energy

0.84

Correlation Coefficient

Intertech  Metlen Energy

Very poor diversification

The 3 months correlation between Intertech and Metlen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Intertech SA Inter and Metlen Energy Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metlen Energy Metals and Intertech 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 Intertech SA Inter are associated (or correlated) with Metlen Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metlen Energy Metals has no effect on the direction of Intertech i.e., Intertech and Metlen Energy go up and down completely randomly.

Pair Corralation between Intertech and Metlen Energy

Assuming the 90 days trading horizon Intertech SA Inter is expected to generate 0.9 times more return on investment than Metlen Energy. However, Intertech SA Inter is 1.12 times less risky than Metlen Energy. It trades about -0.02 of its potential returns per unit of risk. Metlen Energy Metals is currently generating about -0.09 per unit of risk. If you would invest  136.00  in Intertech SA Inter on August 15, 2025 and sell it today you would lose (2.00) from holding Intertech SA Inter or give up 1.47% of portfolio value over 90 days.

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

Intertech SA Inter  vs.  Metlen Energy Metals

Intertech SA Inter

Risk-Adjusted Performance

Weakest

Over the last 90 days Intertech SA Inter has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Metlen Energy Metals

Risk-Adjusted Performance

Weakest

Over the last 90 days Metlen Energy Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Intertech and Metlen Energy

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

The idea behind Intertech SA Inter and Metlen Energy Metals 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.