Correlation Between As Commercial and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both As Commercial 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 As Commercial and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between As Commercial Industrial and Thrace Plastics Holding, you can compare the effects of market volatilities on As Commercial 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 As Commercial with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of As Commercial and Thrace Plastics.
Diversification Opportunities for As Commercial and Thrace Plastics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASCO and Thrace is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding As Commercial Industrial and Thrace Plastics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrace Plastics Holding and As Commercial 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 As Commercial Industrial 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 Holding has no effect on the direction of As Commercial i.e., As Commercial and Thrace Plastics go up and down completely randomly.
Pair Corralation between As Commercial and Thrace Plastics
Assuming the 90 days trading horizon As Commercial Industrial is expected to under-perform the Thrace Plastics. But the stock apears to be less risky and, when comparing its historical volatility, As Commercial Industrial is 1.6 times less risky than Thrace Plastics. The stock trades about -0.05 of its potential returns per unit of risk. The Thrace Plastics Holding is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 370.00 in Thrace Plastics Holding on August 28, 2024 and sell it today you would earn a total of 24.00 from holding Thrace Plastics Holding or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
As Commercial Industrial vs. Thrace Plastics Holding
Performance |
| Timeline |
| As Commercial Industrial |
| Thrace Plastics Holding |
As Commercial and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with As Commercial and Thrace Plastics
The main advantage of trading using opposite As Commercial and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if As Commercial 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' long position.| As Commercial vs. Autohellas SA | As Commercial vs. BriQ Properties Real | As Commercial vs. Thrace Plastics Holding | As Commercial vs. Kri Kri Milk Industry |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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