Correlation Between Thrace Plastics and Technical Olympic
Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Technical Olympic 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 Technical Olympic 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 Technical Olympic SA, you can compare the effects of market volatilities on Thrace Plastics and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Technical Olympic.
Diversification Opportunities for Thrace Plastics and Technical Olympic
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrace and Technical is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Technical Olympic go up and down completely randomly.
Pair Corralation between Thrace Plastics and Technical Olympic
Assuming the 90 days trading horizon Thrace Plastics is expected to generate 2.65 times less return on investment than Technical Olympic. But when comparing it to its historical volatility, Thrace Plastics Holding is 1.07 times less risky than Technical Olympic. It trades about 0.02 of its potential returns per unit of risk. Technical Olympic SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 171.00 in Technical Olympic SA on August 24, 2024 and sell it today you would earn a total of 54.00 from holding Technical Olympic SA or generate 31.58% 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. Technical Olympic SA
Performance |
| Timeline |
| Thrace Plastics Holding |
| Technical Olympic |
Thrace Plastics and Technical Olympic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrace Plastics and Technical Olympic
The main advantage of trading using opposite Thrace Plastics and Technical Olympic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrace Plastics position performs unexpectedly, Technical Olympic 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 Technical Olympic will offset losses from the drop in Technical Olympic'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 |
| Technical Olympic vs. Hellenic Telecommunications Organization | Technical Olympic vs. Profile Systems Software | Technical Olympic vs. Optima bank SA | Technical Olympic vs. Marfin Investment Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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