Correlation Between THRACE PLASTICS and Dr Ing
Can any of the company-specific risk be diversified away by investing in both THRACE PLASTICS and Dr Ing 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 Dr Ing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THRACE PLASTICS and Dr Ing hcF, you can compare the effects of market volatilities on THRACE PLASTICS and Dr Ing 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 Dr Ing. Check out your portfolio center. Please also check ongoing floating volatility patterns of THRACE PLASTICS and Dr Ing.
Diversification Opportunities for THRACE PLASTICS and Dr Ing
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between THRACE and P911 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding THRACE PLASTICS and Dr Ing hcF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Ing hcF 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 Dr Ing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Ing hcF has no effect on the direction of THRACE PLASTICS i.e., THRACE PLASTICS and Dr Ing go up and down completely randomly.
Pair Corralation between THRACE PLASTICS and Dr Ing
Assuming the 90 days trading horizon THRACE PLASTICS is expected to generate 0.7 times more return on investment than Dr Ing. However, THRACE PLASTICS is 1.42 times less risky than Dr Ing. It trades about 0.29 of its potential returns per unit of risk. Dr Ing hcF is currently generating about -0.21 per unit of risk. If you would invest 364.00 in THRACE PLASTICS on September 4, 2024 and sell it today you would earn a total of 35.00 from holding THRACE PLASTICS or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
THRACE PLASTICS vs. Dr Ing hcF
Performance |
| Timeline |
| THRACE PLASTICS |
| Dr Ing hcF |
THRACE PLASTICS and Dr Ing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THRACE PLASTICS and Dr Ing
The main advantage of trading using opposite THRACE PLASTICS and Dr Ing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THRACE PLASTICS position performs unexpectedly, Dr Ing 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 Dr Ing will offset losses from the drop in Dr Ing's long position.| THRACE PLASTICS vs. BOSTON BEER A | THRACE PLASTICS vs. TYSON FOODS A | THRACE PLASTICS vs. PT Indofood Sukses | THRACE PLASTICS vs. Monster Beverage Corp |
| Dr Ing vs. United Breweries Co | Dr Ing vs. Monster Beverage Corp | Dr Ing vs. National Beverage Corp | Dr Ing vs. Evolution Mining Limited |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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