Correlation Between Daios Plastics and General Commercial
Can any of the company-specific risk be diversified away by investing in both Daios Plastics and General Commercial 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 Daios Plastics and General Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daios Plastics SA and General Commercial Industrial, you can compare the effects of market volatilities on Daios Plastics and General Commercial 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 Daios Plastics with a short position of General Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daios Plastics and General Commercial.
Diversification Opportunities for Daios Plastics and General Commercial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daios and General is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Daios Plastics SA and General Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Commercial and Daios 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 Daios Plastics SA are associated (or correlated) with General Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Commercial has no effect on the direction of Daios Plastics i.e., Daios Plastics and General Commercial go up and down completely randomly.
Pair Corralation between Daios Plastics and General Commercial
Assuming the 90 days trading horizon Daios Plastics is expected to generate 2.73 times less return on investment than General Commercial. In addition to that, Daios Plastics is 1.58 times more volatile than General Commercial Industrial. It trades about 0.04 of its total potential returns per unit of risk. General Commercial Industrial is currently generating about 0.17 per unit of volatility. If you would invest 144.00 in General Commercial Industrial on November 27, 2024 and sell it today you would earn a total of 11.00 from holding General Commercial Industrial or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daios Plastics SA vs. General Commercial Industrial
Performance |
| Timeline |
| Daios Plastics SA |
| General Commercial |
Daios Plastics and General Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daios Plastics and General Commercial
The main advantage of trading using opposite Daios Plastics and General Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daios Plastics position performs unexpectedly, General Commercial 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 General Commercial will offset losses from the drop in General Commercial's long position.| Daios Plastics vs. Ktima Kostas Lazaridis | Daios Plastics vs. Centric Holdings SA | Daios Plastics vs. Trastor Real Estate | Daios Plastics vs. As Commercial Industrial |
| General Commercial vs. Ekter SA | General Commercial vs. Elton International Trading | General Commercial vs. Piraeus Port Authority | General Commercial vs. Hellenic Petroleum SA |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |