Correlation Between Polyplex Public and Ubis Public
Can any of the company-specific risk be diversified away by investing in both Polyplex Public and Ubis Public 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 Polyplex Public and Ubis Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polyplex Public and Ubis Public, you can compare the effects of market volatilities on Polyplex Public and Ubis Public 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 Polyplex Public with a short position of Ubis Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polyplex Public and Ubis Public.
Diversification Opportunities for Polyplex Public and Ubis Public
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Polyplex and Ubis is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Polyplex Public and Ubis Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubis Public and Polyplex Public 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 Polyplex Public are associated (or correlated) with Ubis Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubis Public has no effect on the direction of Polyplex Public i.e., Polyplex Public and Ubis Public go up and down completely randomly.
Pair Corralation between Polyplex Public and Ubis Public
Assuming the 90 days trading horizon Polyplex Public is expected to generate 1.62 times more return on investment than Ubis Public. However, Polyplex Public is 1.62 times more volatile than Ubis Public. It trades about -0.24 of its potential returns per unit of risk. Ubis Public is currently generating about -0.39 per unit of risk. If you would invest 1,460 in Polyplex Public on August 29, 2024 and sell it today you would lose (210.00) from holding Polyplex Public or give up 14.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polyplex Public vs. Ubis Public
Performance |
| Timeline |
| Polyplex Public |
| Ubis Public |
Polyplex Public and Ubis Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polyplex Public and Ubis Public
The main advantage of trading using opposite Polyplex Public and Ubis Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polyplex Public position performs unexpectedly, Ubis Public 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 Ubis Public will offset losses from the drop in Ubis Public's long position.| Polyplex Public vs. Polyplex Public | Polyplex Public vs. TPI Polene Power | Polyplex Public vs. Tipco Asphalt Public | Polyplex Public vs. Premier Technology Public |
| Ubis Public vs. Unimit Engineering Public | Ubis Public vs. Winner Group Enterprise | Ubis Public vs. Union Petrochemical Public | Ubis Public vs. Thai Mitsuwa Public |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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