Correlation Between Polyplex PCL and Polyplex (Thailand)

Can any of the company-specific risk be diversified away by investing in both Polyplex PCL and Polyplex (Thailand) 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 Polyplex PCL and Polyplex (Thailand) into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Polyplex PCL and Polyplex Public, you can compare the effects of market volatilities on Polyplex PCL and Polyplex (Thailand) 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 Polyplex PCL with a short position of Polyplex (Thailand). Check out your portfolio center. Please also check ongoing floating volatility patterns of Polyplex PCL and Polyplex (Thailand).

Diversification Opportunities for Polyplex PCL and Polyplex (Thailand)

0.0

Correlation Coefficient

Polyplex PCL  Polyplex (Thailand)

Pay attention - limited upside

The 3 months correlation between Polyplex and Polyplex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Polyplex PCL and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex (Thailand) and Polyplex PCL 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 Polyplex PCL are associated (or correlated) with Polyplex (Thailand). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex (Thailand) has no effect on the direction of Polyplex PCL i.e., Polyplex PCL and Polyplex (Thailand) go up and down completely randomly.

Pair Corralation between Polyplex PCL and Polyplex (Thailand)

If you would invest  0.00  in Polyplex PCL on October 23, 2024 and sell it today you would earn a total of  0.00  from holding Polyplex PCL or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.88%
Values	Daily Returns

Polyplex PCL  vs.  Polyplex Public

Polyplex PCL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polyplex PCL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Polyplex PCL is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Polyplex (Thailand)

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Polyplex Public are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Polyplex (Thailand) reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Polyplex PCL and Polyplex (Thailand)

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

The idea behind Polyplex PCL and Polyplex Public 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.

Check out your portfolio center.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.