Correlation Between Regional Container and Polyplex Public
Can any of the company-specific risk be diversified away by investing in both Regional Container and Polyplex 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 Regional Container and Polyplex Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regional Container Lines and Polyplex Public, you can compare the effects of market volatilities on Regional Container and Polyplex 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 Regional Container with a short position of Polyplex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Container and Polyplex Public.
Diversification Opportunities for Regional Container and Polyplex Public
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regional and Polyplex is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Regional Container Lines and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex Public and Regional Container 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 Regional Container Lines are associated (or correlated) with Polyplex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex Public has no effect on the direction of Regional Container i.e., Regional Container and Polyplex Public go up and down completely randomly.
Pair Corralation between Regional Container and Polyplex Public
Assuming the 90 days trading horizon Regional Container Lines is expected to generate 1.87 times more return on investment than Polyplex Public. However, Regional Container is 1.87 times more volatile than Polyplex Public. It trades about 0.16 of its potential returns per unit of risk. Polyplex Public is currently generating about -0.01 per unit of risk. If you would invest 2,208 in Regional Container Lines on September 12, 2024 and sell it today you would earn a total of 717.00 from holding Regional Container Lines or generate 32.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional Container Lines vs. Polyplex Public
Performance |
| Timeline |
| Regional Container Lines |
| Polyplex Public |
Regional Container and Polyplex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Container and Polyplex Public
The main advantage of trading using opposite Regional Container and Polyplex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Container position performs unexpectedly, Polyplex 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 Polyplex Public will offset losses from the drop in Polyplex Public's long position.| Regional Container vs. Tata Steel Public | Regional Container vs. TTCL Public | Regional Container vs. Thaifoods Group Public | Regional Container vs. TMT Steel Public |
| Polyplex Public vs. Precious Shipping Public | Polyplex Public vs. PTT Global Chemical | Polyplex Public vs. Indorama Ventures PCL | Polyplex Public vs. Somboon Advance Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |