Correlation Between Profile Systems and Thrace Plastics
Can any of the company-specific risk be diversified away by investing in both Profile Systems 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 Profile Systems and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profile Systems Software and Thrace Plastics Holding, you can compare the effects of market volatilities on Profile Systems 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 Profile Systems with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profile Systems and Thrace Plastics.
Diversification Opportunities for Profile Systems and Thrace Plastics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Profile and Thrace is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Profile Systems Software 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 Profile Systems 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 Profile Systems Software 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 Profile Systems i.e., Profile Systems and Thrace Plastics go up and down completely randomly.
Pair Corralation between Profile Systems and Thrace Plastics
Assuming the 90 days trading horizon Profile Systems Software is expected to generate 1.16 times more return on investment than Thrace Plastics. However, Profile Systems is 1.16 times more volatile than Thrace Plastics Holding. It trades about 0.07 of its potential returns per unit of risk. Thrace Plastics Holding is currently generating about 0.02 per unit of risk. If you would invest 284.00 in Profile Systems Software on August 24, 2024 and sell it today you would earn a total of 226.00 from holding Profile Systems Software or generate 79.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profile Systems Software vs. Thrace Plastics Holding
Performance |
| Timeline |
| Profile Systems Software |
| Thrace Plastics Holding |
Profile Systems and Thrace Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profile Systems and Thrace Plastics
The main advantage of trading using opposite Profile Systems and Thrace Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profile Systems 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.| Profile Systems vs. Terna Energy Societe | Profile Systems vs. Mytilineos SA | Profile Systems vs. Public Power | Profile Systems vs. Autohellas SA |
| Thrace Plastics vs. Daios Plastics SA | Thrace Plastics vs. As Commercial Industrial | Thrace Plastics vs. National Bank of | 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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