Correlation Between Thrace Plastics and Flexopack Socit
Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Flexopack Socit 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 Flexopack Socit 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 Flexopack Socit Anonyme, you can compare the effects of market volatilities on Thrace Plastics and Flexopack Socit 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 Flexopack Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Flexopack Socit.
Diversification Opportunities for Thrace Plastics and Flexopack Socit
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thrace and Flexopack is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Flexopack Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexopack Socit Anonyme 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 Flexopack Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexopack Socit Anonyme has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Flexopack Socit go up and down completely randomly.
Pair Corralation between Thrace Plastics and Flexopack Socit
Assuming the 90 days trading horizon Thrace Plastics is expected to generate 1.04 times less return on investment than Flexopack Socit. But when comparing it to its historical volatility, Thrace Plastics Holding is 1.39 times less risky than Flexopack Socit. It trades about 0.2 of its potential returns per unit of risk. Flexopack Socit Anonyme is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 770.00 in Flexopack Socit Anonyme on August 28, 2024 and sell it today you would earn a total of 50.00 from holding Flexopack Socit Anonyme or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrace Plastics Holding vs. Flexopack Socit Anonyme
Performance |
| Timeline |
| Thrace Plastics Holding |
| Flexopack Socit Anonyme |
Thrace Plastics and Flexopack Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrace Plastics and Flexopack Socit
The main advantage of trading using opposite Thrace Plastics and Flexopack Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrace Plastics position performs unexpectedly, Flexopack Socit 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 Flexopack Socit will offset losses from the drop in Flexopack Socit's long position.| Thrace Plastics vs. Elvalhalcor Hellenic Copper | Thrace Plastics vs. Performance Technologies SA | Thrace Plastics vs. Optronics Technologies SA | Thrace Plastics vs. Logismos Information Systems |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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