Correlation Between Flexopack Socit and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both Flexopack Socit 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 Flexopack Socit and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexopack Socit Anonyme and Thrace Plastics Holding, you can compare the effects of market volatilities on Flexopack Socit 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 Flexopack Socit with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexopack Socit and Thrace Plastics.
Diversification Opportunities for Flexopack Socit and Thrace Plastics
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Flexopack and Thrace is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Flexopack Socit Anonyme 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 Flexopack Socit 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 Flexopack Socit Anonyme 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 Flexopack Socit i.e., Flexopack Socit and Thrace Plastics go up and down completely randomly.
Pair Corralation between Flexopack Socit and Thrace Plastics
Assuming the 90 days trading horizon Flexopack Socit Anonyme is expected to under-perform the Thrace Plastics. In addition to that, Flexopack Socit is 1.58 times more volatile than Thrace Plastics Holding. It trades about -0.06 of its total potential returns per unit of risk. Thrace Plastics Holding is currently generating about 0.15 per unit of volatility. If you would invest 378.00 in Thrace Plastics Holding on August 25, 2024 and sell it today you would earn a total of 18.00 from holding Thrace Plastics Holding or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexopack Socit Anonyme vs. Thrace Plastics Holding
Performance |
| Timeline |
| Flexopack Socit Anonyme |
| Thrace Plastics Holding |
Flexopack Socit and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexopack Socit and Thrace Plastics
The main advantage of trading using opposite Flexopack Socit and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexopack Socit 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.| Flexopack Socit vs. Thrace Plastics Holding | Flexopack Socit vs. VIS Containers Manufacturing | Flexopack Socit vs. E Pairis SA |
| Thrace Plastics vs. Daios Plastics SA | Thrace Plastics vs. As Commercial Industrial | Thrace Plastics vs. National Bank of | Thrace Plastics vs. Elvalhalcor Hellenic Copper |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |