Correlation Between THRACE PLASTICS and Calbee
Can any of the company-specific risk be diversified away by investing in both THRACE PLASTICS and Calbee 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 Calbee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THRACE PLASTICS and Calbee Inc, you can compare the effects of market volatilities on THRACE PLASTICS and Calbee 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 Calbee. Check out your portfolio center. Please also check ongoing floating volatility patterns of THRACE PLASTICS and Calbee.
Diversification Opportunities for THRACE PLASTICS and Calbee
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THRACE and Calbee is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding THRACE PLASTICS and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee Inc 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 are associated (or correlated) with Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of THRACE PLASTICS i.e., THRACE PLASTICS and Calbee go up and down completely randomly.
Pair Corralation between THRACE PLASTICS and Calbee
Assuming the 90 days trading horizon THRACE PLASTICS is expected to generate 0.95 times more return on investment than Calbee. However, THRACE PLASTICS is 1.05 times less risky than Calbee. It trades about 0.12 of its potential returns per unit of risk. Calbee Inc is currently generating about -0.18 per unit of risk. If you would invest 393.00 in THRACE PLASTICS on November 4, 2024 and sell it today you would earn a total of 14.00 from holding THRACE PLASTICS or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THRACE PLASTICS vs. Calbee Inc
Performance |
| Timeline |
| THRACE PLASTICS |
| Calbee Inc |
THRACE PLASTICS and Calbee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THRACE PLASTICS and Calbee
The main advantage of trading using opposite THRACE PLASTICS and Calbee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THRACE PLASTICS position performs unexpectedly, Calbee 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 Calbee will offset losses from the drop in Calbee's long position.| THRACE PLASTICS vs. CODERE ONLINE LUX | THRACE PLASTICS vs. YATRA ONLINE DL 0001 | THRACE PLASTICS vs. OPKO HEALTH | THRACE PLASTICS vs. MPH Health Care |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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