Correlation Between Thrace Plastics and Kiriacoulis Mediterranean
Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Kiriacoulis Mediterranean 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 Kiriacoulis Mediterranean 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 Kiriacoulis Mediterranean Cruises, you can compare the effects of market volatilities on Thrace Plastics and Kiriacoulis Mediterranean 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 Kiriacoulis Mediterranean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Kiriacoulis Mediterranean.
Diversification Opportunities for Thrace Plastics and Kiriacoulis Mediterranean
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thrace and Kiriacoulis is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Kiriacoulis Mediterranean Crui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiriacoulis Mediterranean 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 Kiriacoulis Mediterranean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiriacoulis Mediterranean has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Kiriacoulis Mediterranean go up and down completely randomly.
Pair Corralation between Thrace Plastics and Kiriacoulis Mediterranean
Assuming the 90 days trading horizon Thrace Plastics Holding is expected to generate 0.56 times more return on investment than Kiriacoulis Mediterranean. However, Thrace Plastics Holding is 1.78 times less risky than Kiriacoulis Mediterranean. It trades about 0.01 of its potential returns per unit of risk. Kiriacoulis Mediterranean Cruises is currently generating about -0.11 per unit of risk. If you would invest 393.00 in Thrace Plastics Holding on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Thrace Plastics Holding or generate 0.25% 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. Kiriacoulis Mediterranean Crui
Performance |
| Timeline |
| Thrace Plastics Holding |
| Kiriacoulis Mediterranean |
Thrace Plastics and Kiriacoulis Mediterranean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrace Plastics and Kiriacoulis Mediterranean
The main advantage of trading using opposite Thrace Plastics and Kiriacoulis Mediterranean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrace Plastics position performs unexpectedly, Kiriacoulis Mediterranean 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 Kiriacoulis Mediterranean will offset losses from the drop in Kiriacoulis Mediterranean'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 Transaction History module to view history of all your transactions and understand their impact on performance.
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