Correlation Between Thrace Plastics and Interlife General
Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Interlife General 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 Interlife General 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 Interlife General Insurance, you can compare the effects of market volatilities on Thrace Plastics and Interlife General 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 Interlife General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Interlife General.
Diversification Opportunities for Thrace Plastics and Interlife General
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrace and Interlife is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Interlife General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlife General 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 Interlife General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlife General has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Interlife General go up and down completely randomly.
Pair Corralation between Thrace Plastics and Interlife General
Assuming the 90 days trading horizon Thrace Plastics Holding is expected to generate 1.67 times more return on investment than Interlife General. However, Thrace Plastics is 1.67 times more volatile than Interlife General Insurance. It trades about 0.2 of its potential returns per unit of risk. Interlife General Insurance is currently generating about -0.12 per unit of risk. If you would invest 371.00 in Thrace Plastics Holding on August 24, 2024 and sell it today you would earn a total of 26.00 from holding Thrace Plastics Holding or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrace Plastics Holding vs. Interlife General Insurance
Performance |
| Timeline |
| Thrace Plastics Holding |
| Interlife General |
Thrace Plastics and Interlife General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrace Plastics and Interlife General
The main advantage of trading using opposite Thrace Plastics and Interlife General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrace Plastics position performs unexpectedly, Interlife General 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 Interlife General will offset losses from the drop in Interlife General's long position.| Thrace Plastics vs. Daios Plastics SA | Thrace Plastics vs. As Commercial Industrial | Thrace Plastics vs. National Bank of | Thrace Plastics vs. Elvalhalcor Hellenic Copper |
| Interlife General vs. Admie Holding SA | Interlife General vs. Coca Cola HBC AG | Interlife General vs. Quest Holdings SA | Interlife General vs. Motor Oil Corinth |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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