Correlation Between Picomat Plastic and TDT Investment

Can any of the company-specific risk be diversified away by investing in both Picomat Plastic and TDT Investment 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 TDT Investment 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 TDT Investment and, you can compare the effects of market volatilities on Picomat Plastic and TDT Investment 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 TDT Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Picomat Plastic and TDT Investment.

Diversification Opportunities for Picomat Plastic and TDT Investment

0.54

Correlation Coefficient

Picomat Plastic  TDT Investment

Very weak diversification

The 3 months correlation between Picomat and TDT is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Picomat Plastic JSC and TDT Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDT Investment 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 TDT Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDT Investment has no effect on the direction of Picomat Plastic i.e., Picomat Plastic and TDT Investment go up and down completely randomly.

Pair Corralation between Picomat Plastic and TDT Investment

Assuming the 90 days trading horizon Picomat Plastic JSC is expected to generate 1.96 times more return on investment than TDT Investment. However, Picomat Plastic is 1.96 times more volatile than TDT Investment and. It trades about 0.09 of its potential returns per unit of risk. TDT Investment and is currently generating about 0.0 per unit of risk. If you would invest  510,000  in Picomat Plastic JSC on October 23, 2024 and sell it today you would earn a total of  820,000  from holding Picomat Plastic JSC or generate 160.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

Picomat Plastic JSC  vs.  TDT Investment and

Picomat Plastic JSC

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Picomat Plastic JSC are ranked lower than 4 (%) 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 February 2025.

TDT Investment

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TDT Investment and are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, TDT Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Picomat Plastic and TDT Investment

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

The idea behind Picomat Plastic JSC and TDT Investment and 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.