Correlation Between SANOK RUBBER and Plastic Omnium
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and Plastic Omnium 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 SANOK RUBBER and Plastic Omnium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and Plastic Omnium, you can compare the effects of market volatilities on SANOK RUBBER and Plastic Omnium 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 SANOK RUBBER with a short position of Plastic Omnium. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Plastic Omnium.
Diversification Opportunities for SANOK RUBBER and Plastic Omnium
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SANOK and Plastic is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastic Omnium and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with Plastic Omnium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastic Omnium has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and Plastic Omnium go up and down completely randomly.
Pair Corralation between SANOK RUBBER and Plastic Omnium
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 0.35 times more return on investment than Plastic Omnium. However, SANOK RUBBER ZY is 2.88 times less risky than Plastic Omnium. It trades about -0.04 of its potential returns per unit of risk. Plastic Omnium is currently generating about -0.07 per unit of risk. If you would invest 447.00 in SANOK RUBBER ZY on August 31, 2024 and sell it today you would lose (4.00) from holding SANOK RUBBER ZY or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. Plastic Omnium
Performance |
| Timeline |
| SANOK RUBBER ZY |
| Plastic Omnium |
SANOK RUBBER and Plastic Omnium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and Plastic Omnium
The main advantage of trading using opposite SANOK RUBBER and Plastic Omnium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, Plastic Omnium 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 Plastic Omnium will offset losses from the drop in Plastic Omnium's long position.| SANOK RUBBER vs. FEMALE HEALTH | SANOK RUBBER vs. CN MODERN DAIRY | SANOK RUBBER vs. BW OFFSHORE LTD | SANOK RUBBER vs. NISSIN FOODS HLDGS |
| Plastic Omnium vs. Apple Inc | Plastic Omnium vs. Apple Inc | Plastic Omnium vs. Apple Inc | Plastic Omnium vs. Apple Inc |
Check out your portfolio center.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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