Correlation Between Intralot and Centric Holdings

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

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

Diversification Opportunities for Intralot and Centric Holdings

0.21

Correlation Coefficient

Intralot  Centric Holdings

Modest diversification

The 3 months correlation between Intralot and Centric is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated and Centric Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centric Holdings and Intralot 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 Intralot SA Integrated are associated (or correlated) with Centric Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centric Holdings has no effect on the direction of Intralot i.e., Intralot and Centric Holdings go up and down completely randomly.

Pair Corralation between Intralot and Centric Holdings

Assuming the 90 days trading horizon Intralot is expected to generate 2.02 times less return on investment than Centric Holdings. But when comparing it to its historical volatility, Intralot SA Integrated is 1.44 times less risky than Centric Holdings. It trades about 0.08 of its potential returns per unit of risk. Centric Holdings SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  32.00  in Centric Holdings SA on April 23, 2025 and sell it today you would earn a total of  5.00  from holding Centric Holdings SA or generate 15.63% return on investment over 90 days.

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

Intralot SA Integrated  vs.  Centric Holdings SA

Intralot SA Integrated

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intralot SA Integrated are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Intralot may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Centric Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Centric Holdings SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Centric Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intralot and Centric Holdings

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

The idea behind Intralot SA Integrated and Centric Holdings 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.