Correlation Between Opal Balance and Polyram Plastic
Can any of the company-specific risk be diversified away by investing in both Opal Balance and Polyram Plastic 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 Opal Balance and Polyram Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opal Balance and Polyram Plastic Industries, you can compare the effects of market volatilities on Opal Balance and Polyram Plastic 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 Opal Balance with a short position of Polyram Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opal Balance and Polyram Plastic.
Diversification Opportunities for Opal Balance and Polyram Plastic
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Opal and Polyram is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Opal Balance and Polyram Plastic Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyram Plastic Indu and Opal Balance 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 Opal Balance are associated (or correlated) with Polyram Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyram Plastic Indu has no effect on the direction of Opal Balance i.e., Opal Balance and Polyram Plastic go up and down completely randomly.
Pair Corralation between Opal Balance and Polyram Plastic
Assuming the 90 days trading horizon Opal Balance is expected to generate 2.03 times more return on investment than Polyram Plastic. However, Opal Balance is 2.03 times more volatile than Polyram Plastic Industries. It trades about 0.16 of its potential returns per unit of risk. Polyram Plastic Industries is currently generating about 0.08 per unit of risk. If you would invest 23,270 in Opal Balance on November 27, 2024 and sell it today you would earn a total of 1,280 from holding Opal Balance or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opal Balance vs. Polyram Plastic Industries
Performance |
| Timeline |
| Opal Balance |
| Polyram Plastic Indu |
Opal Balance and Polyram Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opal Balance and Polyram Plastic
The main advantage of trading using opposite Opal Balance and Polyram Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opal Balance position performs unexpectedly, Polyram Plastic 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 Polyram Plastic will offset losses from the drop in Polyram Plastic's long position.| Opal Balance vs. Nawi Brothers Group | Opal Balance vs. EN Shoham Business | Opal Balance vs. Peninsula Group | Opal Balance vs. Shikun Binui |
| Polyram Plastic vs. Ormat Technologies | Polyram Plastic vs. Iargento Hi Tech | Polyram Plastic vs. Amot Investments | Polyram Plastic vs. YD More Investments |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |