Correlation Between Thrace Plastics and Elvalhalcor Hellenic
Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Elvalhalcor Hellenic 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 Thrace Plastics and Elvalhalcor Hellenic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrace Plastics Holding and Elvalhalcor Hellenic Copper, you can compare the effects of market volatilities on Thrace Plastics and Elvalhalcor Hellenic 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 Thrace Plastics with a short position of Elvalhalcor Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Elvalhalcor Hellenic.
Diversification Opportunities for Thrace Plastics and Elvalhalcor Hellenic
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thrace and Elvalhalcor is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Elvalhalcor Hellenic Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elvalhalcor Hellenic and Thrace Plastics 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 Thrace Plastics Holding are associated (or correlated) with Elvalhalcor Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elvalhalcor Hellenic has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Elvalhalcor Hellenic go up and down completely randomly.
Pair Corralation between Thrace Plastics and Elvalhalcor Hellenic
Assuming the 90 days trading horizon Thrace Plastics Holding is expected to under-perform the Elvalhalcor Hellenic. But the stock apears to be less risky and, when comparing its historical volatility, Thrace Plastics Holding is 1.31 times less risky than Elvalhalcor Hellenic. The stock trades about -0.01 of its potential returns per unit of risk. The Elvalhalcor Hellenic Copper is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 178.00 in Elvalhalcor Hellenic Copper on August 31, 2024 and sell it today you would earn a total of 9.00 from holding Elvalhalcor Hellenic Copper or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrace Plastics Holding vs. Elvalhalcor Hellenic Copper
Performance |
| Timeline |
| Thrace Plastics Holding |
| Elvalhalcor Hellenic |
Thrace Plastics and Elvalhalcor Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrace Plastics and Elvalhalcor Hellenic
The main advantage of trading using opposite Thrace Plastics and Elvalhalcor Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrace Plastics position performs unexpectedly, Elvalhalcor Hellenic 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 Elvalhalcor Hellenic will offset losses from the drop in Elvalhalcor Hellenic's long position.| Thrace Plastics vs. National Bank of | Thrace Plastics vs. EL D Mouzakis | Thrace Plastics vs. Lampsa Hellenic Hotels | Thrace Plastics vs. Austriacard Holdings AG |
| Elvalhalcor Hellenic vs. Coca Cola HBC AG | Elvalhalcor Hellenic vs. Quest Holdings SA | Elvalhalcor Hellenic vs. Motor Oil Corinth | Elvalhalcor Hellenic vs. Athens Water Supply |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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