Correlation Between ACL Plastics and Union Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between ACL Plastics PLC and Union Chemicals Lanka, you can compare the effects of market volatilities on ACL Plastics and Union Chemicals 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 ACL Plastics with a short position of Union Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACL Plastics and Union Chemicals.
Diversification Opportunities for ACL Plastics and Union Chemicals
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ACL and Union is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ACL Plastics PLC and Union Chemicals Lanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Chemicals Lanka and ACL Plastics 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 ACL Plastics PLC are associated (or correlated) with Union Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Chemicals Lanka has no effect on the direction of ACL Plastics i.e., ACL Plastics and Union Chemicals go up and down completely randomly.
Pair Corralation between ACL Plastics and Union Chemicals
Assuming the 90 days trading horizon ACL Plastics is expected to generate 1.69 times less return on investment than Union Chemicals. But when comparing it to its historical volatility, ACL Plastics PLC is 1.02 times less risky than Union Chemicals. It trades about 0.02 of its potential returns per unit of risk. Union Chemicals Lanka is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 61,400 in Union Chemicals Lanka on August 30, 2024 and sell it today you would earn a total of 7,600 from holding Union Chemicals Lanka or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 65.52% |
| Values | Daily Returns |
ACL Plastics PLC vs. Union Chemicals Lanka
Performance |
| Timeline |
| ACL Plastics PLC |
| Union Chemicals Lanka |
ACL Plastics and Union Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACL Plastics and Union Chemicals
The main advantage of trading using opposite ACL Plastics and Union Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACL Plastics position performs unexpectedly, Union Chemicals 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 Union Chemicals will offset losses from the drop in Union Chemicals' long position.| ACL Plastics vs. EX PACK RUGATED CARTONS | ACL Plastics vs. PANASIAN POWER PLC | ACL Plastics vs. Distilleries Company of | ACL Plastics vs. Palm Garden Hotels |
| Union Chemicals vs. EX PACK RUGATED CARTONS | Union Chemicals vs. PANASIAN POWER PLC | Union Chemicals vs. Distilleries Company of | Union Chemicals vs. Palm Garden Hotels |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |