Correlation Between Optronics Technologies and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both Optronics Technologies 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 Optronics Technologies and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optronics Technologies SA and Thrace Plastics Holding, you can compare the effects of market volatilities on Optronics Technologies 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 Optronics Technologies with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optronics Technologies and Thrace Plastics.
Diversification Opportunities for Optronics Technologies and Thrace Plastics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optronics and Thrace is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Optronics Technologies 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 Optronics Technologies 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 Optronics Technologies 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 Optronics Technologies i.e., Optronics Technologies and Thrace Plastics go up and down completely randomly.
Pair Corralation between Optronics Technologies and Thrace Plastics
If you would invest 371.00 in Thrace Plastics Holding on August 24, 2024 and sell it today you would earn a total of 26.00 from holding Thrace Plastics Holding or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Optronics Technologies SA vs. Thrace Plastics Holding
Performance |
| Timeline |
| Optronics Technologies |
| Thrace Plastics Holding |
Optronics Technologies and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optronics Technologies and Thrace Plastics
The main advantage of trading using opposite Optronics Technologies and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optronics Technologies 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.| Optronics Technologies vs. Foodlink AE | Optronics Technologies vs. National Bank of | Optronics Technologies vs. Bank of Greece | Optronics Technologies vs. Profile Systems Software |
| Thrace Plastics vs. Daios Plastics SA | Thrace Plastics vs. As Commercial Industrial | Thrace Plastics vs. National Bank of | 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |