Correlation Between XLMedia PLC and THRACE PLASTICS
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and THRACE PLASTICS 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 XLMedia PLC and THRACE PLASTICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and THRACE PLASTICS, you can compare the effects of market volatilities on XLMedia PLC and THRACE PLASTICS 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 XLMedia PLC with a short position of THRACE PLASTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and THRACE PLASTICS.
Diversification Opportunities for XLMedia PLC and THRACE PLASTICS
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XLMedia and THRACE is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and THRACE PLASTICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THRACE PLASTICS and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with THRACE PLASTICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THRACE PLASTICS has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and THRACE PLASTICS go up and down completely randomly.
Pair Corralation between XLMedia PLC and THRACE PLASTICS
If you would invest 364.00 in THRACE PLASTICS on September 4, 2024 and sell it today you would earn a total of 35.00 from holding THRACE PLASTICS or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
XLMedia PLC vs. THRACE PLASTICS
Performance |
| Timeline |
| XLMedia PLC |
| THRACE PLASTICS |
XLMedia PLC and THRACE PLASTICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and THRACE PLASTICS
The main advantage of trading using opposite XLMedia PLC and THRACE PLASTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, THRACE PLASTICS 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 THRACE PLASTICS will offset losses from the drop in THRACE PLASTICS's long position.| XLMedia PLC vs. Alphabet Class A | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Tencent Holdings |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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