Correlation Between LAMDA Development and Intralot

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

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

Diversification Opportunities for LAMDA Development and Intralot

-0.34

Correlation Coefficient

LAMDA Development  Intralot

Very good diversification

The 3 months correlation between LAMDA and Intralot is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding LAMDA Development 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 LAMDA Development 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 LAMDA Development 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 LAMDA Development i.e., LAMDA Development and Intralot go up and down completely randomly.

Pair Corralation between LAMDA Development and Intralot

Assuming the 90 days trading horizon LAMDA Development is expected to generate 115.55 times less return on investment than Intralot. But when comparing it to its historical volatility, LAMDA Development SA is 1.4 times less risky than Intralot. It trades about 0.0 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  106.00  in Intralot SA Integrated on April 24, 2025 and sell it today you would earn a total of  8.00  from holding Intralot SA Integrated or generate 7.55% return on investment over 90 days.

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

LAMDA Development SA  vs.  Intralot SA Integrated

LAMDA Development

Risk-Adjusted Performance

Very Weak

Over the last 90 days LAMDA Development SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, LAMDA Development is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with LAMDA Development and Intralot

The main advantage of trading using opposite LAMDA Development and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAMDA Development 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 LAMDA Development 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.