Correlation Between GRENKELEASING and THRACE PLASTICS
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING 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 GRENKELEASING and THRACE PLASTICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and THRACE PLASTICS, you can compare the effects of market volatilities on GRENKELEASING 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 GRENKELEASING with a short position of THRACE PLASTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING and THRACE PLASTICS.
Diversification Opportunities for GRENKELEASING and THRACE PLASTICS
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GRENKELEASING and THRACE is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and THRACE PLASTICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THRACE PLASTICS and GRENKELEASING 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 GRENKELEASING Dusseldorf 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 has no effect on the direction of GRENKELEASING i.e., GRENKELEASING and THRACE PLASTICS go up and down completely randomly.
Pair Corralation between GRENKELEASING and THRACE PLASTICS
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to generate 2.65 times more return on investment than THRACE PLASTICS. However, GRENKELEASING is 2.65 times more volatile than THRACE PLASTICS. It trades about 0.25 of its potential returns per unit of risk. THRACE PLASTICS is currently generating about 0.32 per unit of risk. If you would invest 1,550 in GRENKELEASING Dusseldorf on October 11, 2024 and sell it today you would earn a total of 132.00 from holding GRENKELEASING Dusseldorf or generate 8.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GRENKELEASING Dusseldorf vs. THRACE PLASTICS
Performance |
Timeline |
GRENKELEASING Duss |
THRACE PLASTICS |
GRENKELEASING and THRACE PLASTICS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRENKELEASING and THRACE PLASTICS
The main advantage of trading using opposite GRENKELEASING and THRACE PLASTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING 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's long position.GRENKELEASING vs. Chesapeake Utilities | GRENKELEASING vs. Haier Smart Home | GRENKELEASING vs. Focus Home Interactive | GRENKELEASING vs. GREENX METALS LTD |
THRACE PLASTICS vs. UNITED RENTALS | THRACE PLASTICS vs. Cincinnati Financial Corp | THRACE PLASTICS vs. GRENKELEASING Dusseldorf | THRACE PLASTICS vs. Fukuyama Transporting Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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