Correlation Between Picomat Plastic and Sao Vang

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

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

Diversification Opportunities for Picomat Plastic and Sao Vang

-0.57

Correlation Coefficient

Picomat Plastic  Sao Vang

Excellent diversification

The 3 months correlation between Picomat and Sao is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Picomat Plastic JSC and Sao Vang Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sao Vang Rubber and Picomat Plastic 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 Picomat Plastic JSC are associated (or correlated) with Sao Vang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sao Vang Rubber has no effect on the direction of Picomat Plastic i.e., Picomat Plastic and Sao Vang go up and down completely randomly.

Pair Corralation between Picomat Plastic and Sao Vang

Assuming the 90 days trading horizon Picomat Plastic is expected to generate 5.12 times less return on investment than Sao Vang. But when comparing it to its historical volatility, Picomat Plastic JSC is 2.32 times less risky than Sao Vang. It trades about 0.01 of its potential returns per unit of risk. Sao Vang Rubber is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,570,000  in Sao Vang Rubber on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Sao Vang Rubber or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	71.43%
Values	Daily Returns

Picomat Plastic JSC  vs.  Sao Vang Rubber

Picomat Plastic JSC

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Picomat Plastic JSC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical indicators, Picomat Plastic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sao Vang Rubber

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sao Vang Rubber has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Picomat Plastic and Sao Vang

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

The idea behind Picomat Plastic JSC and Sao Vang Rubber 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 Positions Ratings module to 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.