Correlation Between Thrace Plastics and Kri Kri
Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Kri Kri 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 Kri Kri 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 Kri Kri Milk Industry, you can compare the effects of market volatilities on Thrace Plastics and Kri Kri 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 Kri Kri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Kri Kri.
Diversification Opportunities for Thrace Plastics and Kri Kri
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrace and Kri is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Kri Kri Milk Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kri Kri Milk 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 Kri Kri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kri Kri Milk has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Kri Kri go up and down completely randomly.
Pair Corralation between Thrace Plastics and Kri Kri
Assuming the 90 days trading horizon Thrace Plastics is expected to generate 72.07 times less return on investment than Kri Kri. In addition to that, Thrace Plastics is 1.05 times more volatile than Kri Kri Milk Industry. It trades about 0.0 of its total potential returns per unit of risk. Kri Kri Milk Industry is currently generating about 0.13 per unit of volatility. If you would invest 612.00 in Kri Kri Milk Industry on August 27, 2024 and sell it today you would earn a total of 818.00 from holding Kri Kri Milk Industry or generate 133.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrace Plastics Holding vs. Kri Kri Milk Industry
Performance |
| Timeline |
| Thrace Plastics Holding |
| Kri Kri Milk |
Thrace Plastics and Kri Kri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrace Plastics and Kri Kri
The main advantage of trading using opposite Thrace Plastics and Kri Kri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrace Plastics position performs unexpectedly, Kri Kri 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 Kri Kri will offset losses from the drop in Kri Kri's long position.The idea behind Thrace Plastics Holding and Kri Kri Milk Industry pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kri Kri vs. Motor Oil Corinth | Kri Kri vs. Mytilineos SA | Kri Kri vs. Gr Sarantis SA | Kri Kri vs. Aegean Airlines SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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