Correlation Between Indorama Ventures and Polyplex Public
Can any of the company-specific risk be diversified away by investing in both Indorama Ventures and Polyplex Public 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 Indorama Ventures and Polyplex Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indorama Ventures PCL and Polyplex Public, you can compare the effects of market volatilities on Indorama Ventures and Polyplex Public 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 Indorama Ventures with a short position of Polyplex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indorama Ventures and Polyplex Public.
Diversification Opportunities for Indorama Ventures and Polyplex Public
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indorama and Polyplex is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Indorama Ventures PCL and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex Public and Indorama Ventures 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 Indorama Ventures PCL are associated (or correlated) with Polyplex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex Public has no effect on the direction of Indorama Ventures i.e., Indorama Ventures and Polyplex Public go up and down completely randomly.
Pair Corralation between Indorama Ventures and Polyplex Public
Assuming the 90 days trading horizon Indorama Ventures PCL is expected to generate 1.03 times more return on investment than Polyplex Public. However, Indorama Ventures is 1.03 times more volatile than Polyplex Public. It trades about 0.05 of its potential returns per unit of risk. Polyplex Public is currently generating about 0.05 per unit of risk. If you would invest 2,224 in Indorama Ventures PCL on September 1, 2024 and sell it today you would earn a total of 276.00 from holding Indorama Ventures PCL or generate 12.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Indorama Ventures PCL vs. Polyplex Public
Performance |
| Timeline |
| Indorama Ventures PCL |
| Polyplex Public |
Indorama Ventures and Polyplex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indorama Ventures and Polyplex Public
The main advantage of trading using opposite Indorama Ventures and Polyplex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indorama Ventures position performs unexpectedly, Polyplex Public 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 Polyplex Public will offset losses from the drop in Polyplex Public's long position.| Indorama Ventures vs. AAPICO Hitech Public | Indorama Ventures vs. AP Public | Indorama Ventures vs. Aikchol Hospital Public | Indorama Ventures vs. Bank of Ayudhya |
| Polyplex Public vs. AAPICO Hitech Public | Polyplex Public vs. AP Public | Polyplex Public vs. Aikchol Hospital Public | Polyplex Public vs. Bank of Ayudhya |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |