Correlation Between PLASTIC INDUSTRY and MCB GROUP
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By analyzing existing cross correlation between PLASTIC INDUSTRY LTD and MCB GROUP LTD, you can compare the effects of market volatilities on PLASTIC INDUSTRY and MCB GROUP 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 INDUSTRY with a short position of MCB GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLASTIC INDUSTRY and MCB GROUP.
Diversification Opportunities for PLASTIC INDUSTRY and MCB GROUP
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLASTIC and MCB is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PLASTIC INDUSTRY LTD and MCB GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCB GROUP LTD and PLASTIC INDUSTRY 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 INDUSTRY LTD are associated (or correlated) with MCB GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCB GROUP LTD has no effect on the direction of PLASTIC INDUSTRY i.e., PLASTIC INDUSTRY and MCB GROUP go up and down completely randomly.
Pair Corralation between PLASTIC INDUSTRY and MCB GROUP
Assuming the 90 days trading horizon PLASTIC INDUSTRY LTD is expected to generate 0.75 times more return on investment than MCB GROUP. However, PLASTIC INDUSTRY LTD is 1.33 times less risky than MCB GROUP. It trades about 0.11 of its potential returns per unit of risk. MCB GROUP LTD is currently generating about -0.09 per unit of risk. If you would invest 4,200 in PLASTIC INDUSTRY LTD on August 31, 2024 and sell it today you would earn a total of 150.00 from holding PLASTIC INDUSTRY LTD or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLASTIC INDUSTRY LTD vs. MCB GROUP LTD
Performance |
| Timeline |
| PLASTIC INDUSTRY LTD |
| MCB GROUP LTD |
PLASTIC INDUSTRY and MCB GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLASTIC INDUSTRY and MCB GROUP
The main advantage of trading using opposite PLASTIC INDUSTRY and MCB GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLASTIC INDUSTRY position performs unexpectedly, MCB GROUP 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 MCB GROUP will offset losses from the drop in MCB GROUP's long position.| PLASTIC INDUSTRY vs. FINCORP INVESTMENT LTD | PLASTIC INDUSTRY vs. MCB GROUP LTD | PLASTIC INDUSTRY vs. CAUDAN DEVELOPMENT LTD | PLASTIC INDUSTRY vs. LOTTOTECH LTD |
| MCB GROUP vs. FINCORP INVESTMENT LTD | MCB GROUP vs. PSG FINANCIAL SERVICES | MCB GROUP vs. BEAU VALLON HOSPITAL | MCB GROUP vs. MAURITIUS CHEMICAL FERTILIZER |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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