Correlation Between Ingra Dd and AD Plastik

Can any of the company-specific risk be diversified away by investing in both Ingra Dd and AD Plastik 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 Ingra Dd and AD Plastik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ingra dd and AD Plastik dd, you can compare the effects of market volatilities on Ingra Dd and AD Plastik 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 Ingra Dd with a short position of AD Plastik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingra Dd and AD Plastik.

Diversification Opportunities for Ingra Dd and AD Plastik

-0.08

Correlation Coefficient

Ingra Dd  AD Plastik

Good diversification

The 3 months correlation between Ingra and ADPL is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ingra dd and AD Plastik dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AD Plastik dd and Ingra Dd 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 Ingra dd are associated (or correlated) with AD Plastik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AD Plastik dd has no effect on the direction of Ingra Dd i.e., Ingra Dd and AD Plastik go up and down completely randomly.

Pair Corralation between Ingra Dd and AD Plastik

Assuming the 90 days trading horizon Ingra dd is expected to generate 1.18 times more return on investment than AD Plastik. However, Ingra Dd is 1.18 times more volatile than AD Plastik dd. It trades about 0.13 of its potential returns per unit of risk. AD Plastik dd is currently generating about 0.06 per unit of risk. If you would invest  185.00  in Ingra dd on December 30, 2024 and sell it today you would earn a total of  49.00  from holding Ingra dd or generate 26.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.1%
Values	Daily Returns

Ingra dd  vs.  AD Plastik dd

Ingra dd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ingra dd are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ingra Dd unveiled solid returns over the last few months and may actually be approaching a breakup point.

AD Plastik dd

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AD Plastik dd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, AD Plastik unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ingra Dd and AD Plastik

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

The idea behind Ingra dd and AD Plastik dd 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.