Correlation Between Thrace Plastics and Proodeftiki
Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Proodeftiki 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 Proodeftiki 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 Proodeftiki SA, you can compare the effects of market volatilities on Thrace Plastics and Proodeftiki 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 Proodeftiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Proodeftiki.
Diversification Opportunities for Thrace Plastics and Proodeftiki
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thrace and Proodeftiki is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Proodeftiki SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proodeftiki SA 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 Proodeftiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proodeftiki SA has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Proodeftiki go up and down completely randomly.
Pair Corralation between Thrace Plastics and Proodeftiki
Assuming the 90 days trading horizon Thrace Plastics Holding is expected to generate 0.36 times more return on investment than Proodeftiki. However, Thrace Plastics Holding is 2.77 times less risky than Proodeftiki. It trades about 0.01 of its potential returns per unit of risk. Proodeftiki SA is currently generating about -0.01 per unit of risk. If you would invest 374.00 in Thrace Plastics Holding on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Thrace Plastics Holding or generate 2.41% 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. Proodeftiki SA
Performance |
| Timeline |
| Thrace Plastics Holding |
| Proodeftiki SA |
Thrace Plastics and Proodeftiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrace Plastics and Proodeftiki
The main advantage of trading using opposite Thrace Plastics and Proodeftiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrace Plastics position performs unexpectedly, Proodeftiki 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 Proodeftiki will offset losses from the drop in Proodeftiki's long position.| Thrace Plastics vs. Flexopack Socit Anonyme | Thrace Plastics vs. VIS Containers Manufacturing | Thrace Plastics vs. National Bank of | Thrace Plastics vs. Lampsa Hellenic Hotels |
| Proodeftiki vs. Hellenic Telecommunications Organization | Proodeftiki vs. Thrace Plastics Holding | Proodeftiki vs. Athens Medical CSA | Proodeftiki vs. Piraeus Financial Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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