Correlation Between Iktinos Hellas and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both Iktinos Hellas 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 Iktinos Hellas and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iktinos Hellas SA and Thrace Plastics Holding, you can compare the effects of market volatilities on Iktinos Hellas 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 Iktinos Hellas with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iktinos Hellas and Thrace Plastics.
Diversification Opportunities for Iktinos Hellas and Thrace Plastics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iktinos and Thrace is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA 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 Iktinos Hellas 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 Iktinos Hellas SA 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 Iktinos Hellas i.e., Iktinos Hellas and Thrace Plastics go up and down completely randomly.
Pair Corralation between Iktinos Hellas and Thrace Plastics
Assuming the 90 days trading horizon Iktinos Hellas is expected to generate 1.56 times less return on investment than Thrace Plastics. In addition to that, Iktinos Hellas is 1.98 times more volatile than Thrace Plastics Holding. It trades about 0.07 of its total potential returns per unit of risk. Thrace Plastics Holding is currently generating about 0.21 per unit of volatility. If you would invest 370.00 in Thrace Plastics Holding on August 28, 2024 and sell it today you would earn a total of 24.00 from holding Thrace Plastics Holding or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iktinos Hellas SA vs. Thrace Plastics Holding
Performance |
| Timeline |
| Iktinos Hellas SA |
| Thrace Plastics Holding |
Iktinos Hellas and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iktinos Hellas and Thrace Plastics
The main advantage of trading using opposite Iktinos Hellas and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iktinos Hellas 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.| Iktinos Hellas vs. National Bank of | Iktinos Hellas vs. EL D Mouzakis | Iktinos Hellas vs. Lampsa Hellenic Hotels | Iktinos Hellas vs. Eurobank Ergasias Services |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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