Correlation Between Trastor Real and Intralot

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

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

Diversification Opportunities for Trastor Real and Intralot

0.38

Correlation Coefficient

Trastor Real  Intralot

Weak diversification

The 3 months correlation between Trastor and Intralot is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Trastor Real Estate 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 Trastor Real 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 Trastor Real Estate 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 Trastor Real i.e., Trastor Real and Intralot go up and down completely randomly.

Pair Corralation between Trastor Real and Intralot

Assuming the 90 days trading horizon Trastor Real Estate is expected to generate 1.06 times more return on investment than Intralot. However, Trastor Real is 1.06 times more volatile than Intralot SA Integrated. It trades about 0.09 of its potential returns per unit of risk. Intralot SA Integrated is currently generating about 0.08 per unit of risk. If you would invest  121.00  in Trastor Real Estate on April 24, 2025 and sell it today you would earn a total of  11.00  from holding Trastor Real Estate or generate 9.09% return on investment over 90 days.

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

Trastor Real Estate  vs.  Intralot SA Integrated

Trastor Real Estate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trastor Real Estate are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Trastor Real may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 weak basic indicators, Intralot may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Trastor Real and Intralot

The main advantage of trading using opposite Trastor Real and Intralot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trastor Real 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 Trastor Real Estate 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.