Correlation Between THRACE PLASTICS and AS Tallink
Can any of the company-specific risk be diversified away by investing in both THRACE PLASTICS and AS Tallink 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 AS Tallink into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THRACE PLASTICS and AS Tallink Grupp, you can compare the effects of market volatilities on THRACE PLASTICS and AS Tallink 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 AS Tallink. Check out your portfolio center. Please also check ongoing floating volatility patterns of THRACE PLASTICS and AS Tallink.
Diversification Opportunities for THRACE PLASTICS and AS Tallink
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THRACE and T5N is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding THRACE PLASTICS and AS Tallink Grupp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AS Tallink Grupp 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 AS Tallink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AS Tallink Grupp has no effect on the direction of THRACE PLASTICS i.e., THRACE PLASTICS and AS Tallink go up and down completely randomly.
Pair Corralation between THRACE PLASTICS and AS Tallink
Assuming the 90 days trading horizon THRACE PLASTICS is expected to under-perform the AS Tallink. But the stock apears to be less risky and, when comparing its historical volatility, THRACE PLASTICS is 1.26 times less risky than AS Tallink. The stock trades about 0.0 of its potential returns per unit of risk. The AS Tallink Grupp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 51.00 in AS Tallink Grupp on August 31, 2024 and sell it today you would earn a total of 5.00 from holding AS Tallink Grupp or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
THRACE PLASTICS vs. AS Tallink Grupp
Performance |
| Timeline |
| THRACE PLASTICS |
| AS Tallink Grupp |
THRACE PLASTICS and AS Tallink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THRACE PLASTICS and AS Tallink
The main advantage of trading using opposite THRACE PLASTICS and AS Tallink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THRACE PLASTICS position performs unexpectedly, AS Tallink 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 AS Tallink will offset losses from the drop in AS Tallink's long position.| THRACE PLASTICS vs. SBA Communications Corp | THRACE PLASTICS vs. Madison Square Garden | THRACE PLASTICS vs. MTI WIRELESS EDGE | THRACE PLASTICS vs. TRAVEL LEISURE DL 01 |
| AS Tallink vs. Qingdao Port International | AS Tallink vs. Superior Plus Corp | AS Tallink vs. NMI Holdings | AS Tallink vs. Origin Agritech |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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