Correlation Between Plastic Additives and Alphanam
Can any of the company-specific risk be diversified away by investing in both Plastic Additives and Alphanam 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 Plastic Additives and Alphanam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plastic Additives JSC and Alphanam ME, you can compare the effects of market volatilities on Plastic Additives and Alphanam 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 Plastic Additives with a short position of Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plastic Additives and Alphanam.
Diversification Opportunities for Plastic Additives and Alphanam
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Plastic and Alphanam is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Plastic Additives JSC and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME and Plastic Additives 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 Plastic Additives JSC are associated (or correlated) with Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Plastic Additives i.e., Plastic Additives and Alphanam go up and down completely randomly.
Pair Corralation between Plastic Additives and Alphanam
Assuming the 90 days trading horizon Plastic Additives JSC is expected to generate 1.13 times more return on investment than Alphanam. However, Plastic Additives is 1.13 times more volatile than Alphanam ME. It trades about 0.18 of its potential returns per unit of risk. Alphanam ME is currently generating about -0.06 per unit of risk. If you would invest 840,000 in Plastic Additives JSC on September 4, 2024 and sell it today you would earn a total of 150,000 from holding Plastic Additives JSC or generate 17.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Plastic Additives JSC vs. Alphanam ME
Performance |
| Timeline |
| Plastic Additives JSC |
| Alphanam ME |
Plastic Additives and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plastic Additives and Alphanam
The main advantage of trading using opposite Plastic Additives and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plastic Additives position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| Plastic Additives vs. Bao Ngoc Investment | Plastic Additives vs. Hochiminh City Metal | Plastic Additives vs. TDG Global Investment | Plastic Additives vs. Military Insurance Corp |
| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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