Correlation Between LAMDA Development and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both LAMDA Development 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 LAMDA Development and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAMDA Development SA and Thrace Plastics Holding, you can compare the effects of market volatilities on LAMDA Development 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 LAMDA Development with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAMDA Development and Thrace Plastics.
Diversification Opportunities for LAMDA Development and Thrace Plastics
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between LAMDA and Thrace is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding LAMDA Development 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 LAMDA Development 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 LAMDA Development 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 LAMDA Development i.e., LAMDA Development and Thrace Plastics go up and down completely randomly.
Pair Corralation between LAMDA Development and Thrace Plastics
Assuming the 90 days trading horizon LAMDA Development SA is expected to generate 1.15 times more return on investment than Thrace Plastics. However, LAMDA Development is 1.15 times more volatile than Thrace Plastics Holding. It trades about 0.0 of its potential returns per unit of risk. Thrace Plastics Holding is currently generating about -0.01 per unit of risk. If you would invest 717.00 in LAMDA Development SA on November 3, 2024 and sell it today you would lose (21.00) from holding LAMDA Development SA or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
LAMDA Development SA vs. Thrace Plastics Holding
Performance |
| Timeline |
| LAMDA Development |
| Thrace Plastics Holding |
LAMDA Development and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAMDA Development and Thrace Plastics
The main advantage of trading using opposite LAMDA Development and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAMDA Development 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.| LAMDA Development vs. Hellenic Telecommunications Organization | LAMDA Development vs. Daios Plastics SA | LAMDA Development vs. Sidma SA Steel | LAMDA Development vs. National Bank of |
| Thrace Plastics vs. Marfin Investment Group | Thrace Plastics vs. Piraeus Financial Holdings | Thrace Plastics vs. Lampsa Hellenic Hotels | Thrace Plastics vs. Elvalhalcor Hellenic Copper |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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