Correlation Between PANASIAN POWER and ACL Plastics
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By analyzing existing cross correlation between PANASIAN POWER PLC and ACL Plastics PLC, you can compare the effects of market volatilities on PANASIAN POWER and ACL 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 PANASIAN POWER with a short position of ACL Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PANASIAN POWER and ACL Plastics.
Diversification Opportunities for PANASIAN POWER and ACL Plastics
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PANASIAN and ACL is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding PANASIAN POWER PLC and ACL Plastics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Plastics PLC and PANASIAN POWER 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 PANASIAN POWER PLC are associated (or correlated) with ACL Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Plastics PLC has no effect on the direction of PANASIAN POWER i.e., PANASIAN POWER and ACL Plastics go up and down completely randomly.
Pair Corralation between PANASIAN POWER and ACL Plastics
Assuming the 90 days trading horizon PANASIAN POWER PLC is expected to generate 1.62 times more return on investment than ACL Plastics. However, PANASIAN POWER is 1.62 times more volatile than ACL Plastics PLC. It trades about 0.09 of its potential returns per unit of risk. ACL Plastics PLC is currently generating about 0.07 per unit of risk. If you would invest 410.00 in PANASIAN POWER PLC on August 30, 2024 and sell it today you would earn a total of 100.00 from holding PANASIAN POWER PLC or generate 24.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
PANASIAN POWER PLC vs. ACL Plastics PLC
Performance |
| Timeline |
| PANASIAN POWER PLC |
| ACL Plastics PLC |
PANASIAN POWER and ACL Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PANASIAN POWER and ACL Plastics
The main advantage of trading using opposite PANASIAN POWER and ACL Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PANASIAN POWER position performs unexpectedly, ACL 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 ACL Plastics will offset losses from the drop in ACL Plastics' long position.| PANASIAN POWER vs. Lighthouse Hotel PLC | PANASIAN POWER vs. Pegasus Hotels of | PANASIAN POWER vs. BROWNS INVESTMENTS PLC | PANASIAN POWER vs. Tangerine Beach Hotels |
| ACL Plastics vs. EX PACK RUGATED CARTONS | ACL Plastics vs. PANASIAN POWER PLC | ACL Plastics vs. Distilleries Company of | ACL Plastics vs. Palm Garden Hotels |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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