Correlation Between 577 Investment and Picomat Plastic

Can any of the company-specific risk be diversified away by investing in both 577 Investment and Picomat Plastic 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 577 Investment and Picomat Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 577 Investment Corp and Picomat Plastic JSC, you can compare the effects of market volatilities on 577 Investment and Picomat Plastic 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 577 Investment with a short position of Picomat Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of 577 Investment and Picomat Plastic.

Diversification Opportunities for 577 Investment and Picomat Plastic

-0.06

Correlation Coefficient

577 Investment  Picomat Plastic

Good diversification

The 3 months correlation between 577 and Picomat is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding 577 Investment Corp and Picomat Plastic JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Picomat Plastic JSC and 577 Investment 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 577 Investment Corp are associated (or correlated) with Picomat Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Picomat Plastic JSC has no effect on the direction of 577 Investment i.e., 577 Investment and Picomat Plastic go up and down completely randomly.

Pair Corralation between 577 Investment and Picomat Plastic

Assuming the 90 days trading horizon 577 Investment is expected to generate 1.58 times less return on investment than Picomat Plastic. But when comparing it to its historical volatility, 577 Investment Corp is 1.21 times less risky than Picomat Plastic. It trades about 0.06 of its potential returns per unit of risk. Picomat Plastic JSC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  520,000  in Picomat Plastic JSC on September 28, 2024 and sell it today you would earn a total of  750,000  from holding Picomat Plastic JSC or generate 144.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.39%
Values	Daily Returns

577 Investment Corp  vs.  Picomat Plastic JSC

577 Investment Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 577 Investment Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, 577 Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Picomat Plastic JSC

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Picomat Plastic JSC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical indicators, Picomat Plastic is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with 577 Investment and Picomat Plastic

The main advantage of trading using opposite 577 Investment and Picomat Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 577 Investment position performs unexpectedly, Picomat Plastic 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 Picomat Plastic will offset losses from the drop in Picomat Plastic's long position.

The idea behind 577 Investment Corp and Picomat Plastic JSC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.