Correlation Between Thessaloniki Water and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both Thessaloniki Water 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 Thessaloniki Water and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thessaloniki Water Supply and Thrace Plastics Holding, you can compare the effects of market volatilities on Thessaloniki Water 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 Thessaloniki Water with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thessaloniki Water and Thrace Plastics.
Diversification Opportunities for Thessaloniki Water and Thrace Plastics
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thessaloniki and Thrace is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Thessaloniki Water Supply 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 Thessaloniki Water 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 Thessaloniki Water Supply 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 Thessaloniki Water i.e., Thessaloniki Water and Thrace Plastics go up and down completely randomly.
Pair Corralation between Thessaloniki Water and Thrace Plastics
Assuming the 90 days trading horizon Thessaloniki Water Supply is expected to under-perform the Thrace Plastics. But the stock apears to be less risky and, when comparing its historical volatility, Thessaloniki Water Supply is 1.55 times less risky than Thrace Plastics. The stock trades about -0.12 of its potential returns per unit of risk. The Thrace Plastics Holding is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Thrace Plastics Holding on September 2, 2024 and sell it today you would earn a total of 36.00 from holding Thrace Plastics Holding or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thessaloniki Water Supply vs. Thrace Plastics Holding
Performance |
| Timeline |
| Thessaloniki Water Supply |
| Thrace Plastics Holding |
Thessaloniki Water and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thessaloniki Water and Thrace Plastics
The main advantage of trading using opposite Thessaloniki Water and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thessaloniki Water 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.| Thessaloniki Water vs. Hellenic Petroleum SA | Thessaloniki Water vs. Mytilineos SA | Thessaloniki Water vs. Hellenic Telecommunications Organization | Thessaloniki Water vs. Public Power |
| Thrace Plastics vs. National Bank of | Thrace Plastics vs. EL D Mouzakis | Thrace Plastics vs. Lampsa Hellenic Hotels | Thrace Plastics vs. Austriacard Holdings AG |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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