Correlation Between SinterCast and Instalco Intressenter

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

By analyzing existing cross correlation between SinterCast AB and Instalco Intressenter AB, you can compare the effects of market volatilities on SinterCast and Instalco Intressenter 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 SinterCast with a short position of Instalco Intressenter. Check out your portfolio center. Please also check ongoing floating volatility patterns of SinterCast and Instalco Intressenter.

Diversification Opportunities for SinterCast and Instalco Intressenter

-0.79

Correlation Coefficient

SinterCast  Instalco Intressenter

Pay attention - limited upside

The 3 months correlation between SinterCast and Instalco is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SinterCast AB and Instalco Intressenter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instalco Intressenter and SinterCast 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 SinterCast AB are associated (or correlated) with Instalco Intressenter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instalco Intressenter has no effect on the direction of SinterCast i.e., SinterCast and Instalco Intressenter go up and down completely randomly.

Pair Corralation between SinterCast and Instalco Intressenter

Assuming the 90 days trading horizon SinterCast AB is expected to generate 0.33 times more return on investment than Instalco Intressenter. However, SinterCast AB is 3.01 times less risky than Instalco Intressenter. It trades about 0.19 of its potential returns per unit of risk. Instalco Intressenter AB is currently generating about -0.03 per unit of risk. If you would invest  10,076  in SinterCast AB on April 23, 2025 and sell it today you would earn a total of  1,724  from holding SinterCast AB or generate 17.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

SinterCast AB  vs.  Instalco Intressenter AB

SinterCast AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SinterCast AB are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SinterCast unveiled solid returns over the last few months and may actually be approaching a breakup point.

Instalco Intressenter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Instalco Intressenter AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with SinterCast and Instalco Intressenter

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

The idea behind SinterCast AB and Instalco Intressenter AB 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.