Correlation Between ABM International and Premier Polyfilm
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By analyzing existing cross correlation between ABM International Limited and Premier Polyfilm Limited, you can compare the effects of market volatilities on ABM International and Premier Polyfilm 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 ABM International with a short position of Premier Polyfilm. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABM International and Premier Polyfilm.
Diversification Opportunities for ABM International and Premier Polyfilm
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ABM and Premier is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding ABM International Limited and Premier Polyfilm Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Polyfilm and ABM International 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 ABM International Limited are associated (or correlated) with Premier Polyfilm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Polyfilm has no effect on the direction of ABM International i.e., ABM International and Premier Polyfilm go up and down completely randomly.
Pair Corralation between ABM International and Premier Polyfilm
Assuming the 90 days trading horizon ABM International Limited is expected to generate 0.99 times more return on investment than Premier Polyfilm. However, ABM International Limited is 1.01 times less risky than Premier Polyfilm. It trades about -0.07 of its potential returns per unit of risk. Premier Polyfilm Limited is currently generating about -0.08 per unit of risk. If you would invest 6,611 in ABM International Limited on October 20, 2024 and sell it today you would lose (371.00) from holding ABM International Limited or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABM International Limited vs. Premier Polyfilm Limited
Performance |
| Timeline |
| ABM International |
| Premier Polyfilm |
ABM International and Premier Polyfilm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABM International and Premier Polyfilm
The main advantage of trading using opposite ABM International and Premier Polyfilm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABM International position performs unexpectedly, Premier Polyfilm 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 Premier Polyfilm will offset losses from the drop in Premier Polyfilm's long position.| ABM International vs. NMDC Limited | ABM International vs. Steel Authority of | ABM International vs. Embassy Office Parks | ABM International vs. Jai Balaji Industries |
| Premier Polyfilm vs. NMDC Limited | Premier Polyfilm vs. Steel Authority of | Premier Polyfilm vs. Embassy Office Parks | Premier Polyfilm vs. Jai Balaji Industries |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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