Correlation Between BriQ Properties and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both BriQ Properties 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 BriQ Properties and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BriQ Properties Real and Thrace Plastics Holding, you can compare the effects of market volatilities on BriQ Properties 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 BriQ Properties with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BriQ Properties and Thrace Plastics.
Diversification Opportunities for BriQ Properties and Thrace Plastics
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between BriQ and Thrace is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding BriQ Properties Real 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 BriQ Properties 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 BriQ Properties Real 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 BriQ Properties i.e., BriQ Properties and Thrace Plastics go up and down completely randomly.
Pair Corralation between BriQ Properties and Thrace Plastics
Assuming the 90 days trading horizon BriQ Properties Real is expected to generate 0.52 times more return on investment than Thrace Plastics. However, BriQ Properties Real is 1.94 times less risky than Thrace Plastics. It trades about 0.04 of its potential returns per unit of risk. Thrace Plastics Holding is currently generating about 0.0 per unit of risk. If you would invest 179.00 in BriQ Properties Real on August 27, 2024 and sell it today you would earn a total of 29.00 from holding BriQ Properties Real or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BriQ Properties Real vs. Thrace Plastics Holding
Performance |
| Timeline |
| BriQ Properties Real |
| Thrace Plastics Holding |
BriQ Properties and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BriQ Properties and Thrace Plastics
The main advantage of trading using opposite BriQ Properties and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BriQ Properties 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.| BriQ Properties vs. Mytilineos SA | BriQ Properties vs. Motor Oil Corinth | BriQ Properties vs. Hellenic Petroleum SA | BriQ Properties vs. National Bank of |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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