Correlation Between Thrace Plastics and Nafpaktos Textile
Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Nafpaktos Textile 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 Nafpaktos Textile 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 Nafpaktos Textile Industry, you can compare the effects of market volatilities on Thrace Plastics and Nafpaktos Textile 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 Nafpaktos Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Nafpaktos Textile.
Diversification Opportunities for Thrace Plastics and Nafpaktos Textile
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrace and Nafpaktos is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Nafpaktos Textile Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafpaktos Textile 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 Nafpaktos Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafpaktos Textile has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Nafpaktos Textile go up and down completely randomly.
Pair Corralation between Thrace Plastics and Nafpaktos Textile
Assuming the 90 days trading horizon Thrace Plastics Holding is expected to generate 0.59 times more return on investment than Nafpaktos Textile. However, Thrace Plastics Holding is 1.71 times less risky than Nafpaktos Textile. It trades about 0.01 of its potential returns per unit of risk. Nafpaktos Textile Industry is currently generating about 0.0 per unit of risk. If you would invest 390.00 in Thrace Plastics Holding on December 12, 2024 and sell it today you would lose (4.00) from holding Thrace Plastics Holding or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrace Plastics Holding vs. Nafpaktos Textile Industry
Performance |
| Timeline |
| Thrace Plastics Holding |
| Nafpaktos Textile |
Thrace Plastics and Nafpaktos Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrace Plastics and Nafpaktos Textile
The main advantage of trading using opposite Thrace Plastics and Nafpaktos Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrace Plastics position performs unexpectedly, Nafpaktos Textile 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 Nafpaktos Textile will offset losses from the drop in Nafpaktos Textile's long position.| Thrace Plastics vs. CPI Computer Peripherals | ||
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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