Correlation Between Thrace Plastics and Alpha Astika

Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Alpha Astika 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 Alpha Astika into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thrace Plastics Holding and Alpha Astika Akinita, you can compare the effects of market volatilities on Thrace Plastics and Alpha Astika 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 Alpha Astika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Alpha Astika.

Diversification Opportunities for Thrace Plastics and Alpha Astika

-0.49

Correlation Coefficient

Thrace Plastics  Alpha Astika

Very good diversification

The 3 months correlation between Thrace and Alpha is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Alpha Astika Akinita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Astika Akinita 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 Holding are associated (or correlated) with Alpha Astika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Astika Akinita has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Alpha Astika go up and down completely randomly.

Pair Corralation between Thrace Plastics and Alpha Astika

Assuming the 90 days trading horizon Thrace Plastics is expected to generate 1.39 times less return on investment than Alpha Astika. But when comparing it to its historical volatility, Thrace Plastics Holding is 1.17 times less risky than Alpha Astika. It trades about 0.03 of its potential returns per unit of risk. Alpha Astika Akinita is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  704.00  in Alpha Astika Akinita on September 13, 2024 and sell it today you would earn a total of  18.00  from holding Alpha Astika Akinita or generate 2.56% 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 Holding  vs.  Alpha Astika Akinita

Thrace Plastics Holding

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Thrace Plastics Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Thrace Plastics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Alpha Astika Akinita

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Astika Akinita are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Alpha Astika is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Thrace Plastics and Alpha Astika

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

The idea behind Thrace Plastics Holding and Alpha Astika Akinita 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.