Correlation Between HVA Foods and ACL Plastics
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By analyzing existing cross correlation between HVA Foods PLC and ACL Plastics PLC, you can compare the effects of market volatilities on HVA Foods and ACL 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 HVA Foods with a short position of ACL Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HVA Foods and ACL Plastics.
Diversification Opportunities for HVA Foods and ACL Plastics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between HVA and ACL is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding HVA Foods PLC and ACL Plastics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Plastics PLC and HVA Foods 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 HVA Foods PLC are associated (or correlated) with ACL Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Plastics PLC has no effect on the direction of HVA Foods i.e., HVA Foods and ACL Plastics go up and down completely randomly.
Pair Corralation between HVA Foods and ACL Plastics
Assuming the 90 days trading horizon HVA Foods is expected to generate 2.01 times less return on investment than ACL Plastics. In addition to that, HVA Foods is 1.84 times more volatile than ACL Plastics PLC. It trades about 0.0 of its total potential returns per unit of risk. ACL Plastics PLC is currently generating about 0.02 per unit of volatility. If you would invest 43,650 in ACL Plastics PLC on August 28, 2024 and sell it today you would earn a total of 2,700 from holding ACL Plastics PLC or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.42% |
| Values | Daily Returns |
HVA Foods PLC vs. ACL Plastics PLC
Performance |
| Timeline |
| HVA Foods PLC |
| ACL Plastics PLC |
HVA Foods and ACL Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HVA Foods and ACL Plastics
The main advantage of trading using opposite HVA Foods and ACL Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HVA Foods position performs unexpectedly, ACL 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 ACL Plastics will offset losses from the drop in ACL Plastics' long position.| HVA Foods vs. CEYLINCO INSURANCE PLC | HVA Foods vs. Softlogic Life Insurance | HVA Foods vs. Peoples Insurance PLC | HVA Foods vs. CEYLON HOSPITALS PLC |
| ACL Plastics vs. BROWNS INVESTMENTS PLC | ACL Plastics vs. Convenience Foods PLC | ACL Plastics vs. Keells Food Products | ACL Plastics vs. Lanka Milk Foods |
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 Stocks Directory module to find actively traded stocks across global markets.
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