Correlation Between Piraeus Port and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both Piraeus Port and Thrace Plastics 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 Piraeus Port and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piraeus Port Authority and Thrace Plastics Holding, you can compare the effects of market volatilities on Piraeus Port and Thrace Plastics 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 Piraeus Port with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Port and Thrace Plastics.
Diversification Opportunities for Piraeus Port and Thrace Plastics
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Piraeus and Thrace is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Port Authority and Thrace Plastics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrace Plastics Holding and Piraeus Port 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 Piraeus Port Authority are associated (or correlated) with Thrace Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrace Plastics Holding has no effect on the direction of Piraeus Port i.e., Piraeus Port and Thrace Plastics go up and down completely randomly.
Pair Corralation between Piraeus Port and Thrace Plastics
Assuming the 90 days trading horizon Piraeus Port Authority is expected to generate 1.35 times more return on investment than Thrace Plastics. However, Piraeus Port is 1.35 times more volatile than Thrace Plastics Holding. It trades about 0.05 of its potential returns per unit of risk. Thrace Plastics Holding is currently generating about -0.01 per unit of risk. If you would invest 2,545 in Piraeus Port Authority on November 3, 2024 and sell it today you would earn a total of 445.00 from holding Piraeus Port Authority or generate 17.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Port Authority vs. Thrace Plastics Holding
Performance |
| Timeline |
| Piraeus Port Authority |
| Thrace Plastics Holding |
Piraeus Port and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Port and Thrace Plastics
The main advantage of trading using opposite Piraeus Port and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Port position performs unexpectedly, Thrace Plastics 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 Thrace Plastics will offset losses from the drop in Thrace Plastics' long position.| Piraeus Port vs. General Commercial Industrial | Piraeus Port vs. Bank of Greece | Piraeus Port vs. Logismos Information Systems | Piraeus Port vs. As Commercial Industrial |
| Thrace Plastics vs. Marfin Investment Group | Thrace Plastics vs. Piraeus Financial Holdings | Thrace Plastics vs. Lampsa Hellenic Hotels | Thrace Plastics vs. Elvalhalcor Hellenic Copper |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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