Correlation Between Compagnie Plastic and PACIFIC ONLINE
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and PACIFIC ONLINE 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 Compagnie Plastic and PACIFIC ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and PACIFIC ONLINE, you can compare the effects of market volatilities on Compagnie Plastic and PACIFIC ONLINE 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 Compagnie Plastic with a short position of PACIFIC ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and PACIFIC ONLINE.
Diversification Opportunities for Compagnie Plastic and PACIFIC ONLINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compagnie and PACIFIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and PACIFIC ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC ONLINE and Compagnie Plastic 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 Compagnie Plastic Omnium are associated (or correlated) with PACIFIC ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC ONLINE has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and PACIFIC ONLINE go up and down completely randomly.
Pair Corralation between Compagnie Plastic and PACIFIC ONLINE
If you would invest 946.00 in Compagnie Plastic Omnium on October 13, 2024 and sell it today you would earn a total of 106.00 from holding Compagnie Plastic Omnium or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. PACIFIC ONLINE
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| PACIFIC ONLINE |
Compagnie Plastic and PACIFIC ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and PACIFIC ONLINE
The main advantage of trading using opposite Compagnie Plastic and PACIFIC ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, PACIFIC ONLINE 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 PACIFIC ONLINE will offset losses from the drop in PACIFIC ONLINE's long position.| Compagnie Plastic vs. Strategic Education | Compagnie Plastic vs. Siamgas And Petrochemicals | Compagnie Plastic vs. betterU Education Corp | Compagnie Plastic vs. INDO RAMA SYNTHETIC |
| PACIFIC ONLINE vs. Compagnie Plastic Omnium | PACIFIC ONLINE vs. Perseus Mining Limited | PACIFIC ONLINE vs. NEWELL RUBBERMAID | PACIFIC ONLINE vs. Mitsubishi Materials |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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