Correlation Between Interlife General and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both Interlife General 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 Interlife General and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interlife General Insurance and Thrace Plastics Holding, you can compare the effects of market volatilities on Interlife General 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 Interlife General with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlife General and Thrace Plastics.
Diversification Opportunities for Interlife General and Thrace Plastics
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Interlife and Thrace is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Interlife General Insurance 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 Interlife General 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 Interlife General Insurance 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 Interlife General i.e., Interlife General and Thrace Plastics go up and down completely randomly.
Pair Corralation between Interlife General and Thrace Plastics
Assuming the 90 days trading horizon Interlife General Insurance is expected to under-perform the Thrace Plastics. But the stock apears to be less risky and, when comparing its historical volatility, Interlife General Insurance is 1.78 times less risky than Thrace Plastics. The stock trades about -0.15 of its potential returns per unit of risk. The Thrace Plastics Holding is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interlife General Insurance vs. Thrace Plastics Holding
Performance |
| Timeline |
| Interlife General |
| Thrace Plastics Holding |
Interlife General and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlife General and Thrace Plastics
The main advantage of trading using opposite Interlife General and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlife General 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.| Interlife General vs. Admie Holding SA | Interlife General vs. Coca Cola HBC AG | Interlife General vs. Quest Holdings SA | Interlife General vs. Motor Oil Corinth |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |