Correlation Between THRACE PLASTICS and Komercní Banka

Can any of the company-specific risk be diversified away by investing in both THRACE PLASTICS and Komercní Banka 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 Komercní Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between THRACE PLASTICS and Komercn banka as, you can compare the effects of market volatilities on THRACE PLASTICS and Komercní Banka 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 Komercní Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of THRACE PLASTICS and Komercní Banka.

Diversification Opportunities for THRACE PLASTICS and Komercní Banka

0.6

Correlation Coefficient

THRACE PLASTICS  Komercní Banka

Poor diversification

The 3 months correlation between THRACE and Komercní is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding THRACE PLASTICS and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as 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 are associated (or correlated) with Komercní Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of THRACE PLASTICS i.e., THRACE PLASTICS and Komercní Banka go up and down completely randomly.

Pair Corralation between THRACE PLASTICS and Komercní Banka

Assuming the 90 days trading horizon THRACE PLASTICS is expected to generate 0.76 times more return on investment than Komercní Banka. However, THRACE PLASTICS is 1.32 times less risky than Komercní Banka. It trades about 0.25 of its potential returns per unit of risk. Komercn banka as is currently generating about 0.08 per unit of risk. If you would invest  387.00  in THRACE PLASTICS on October 10, 2024 and sell it today you would earn a total of  13.00  from holding THRACE PLASTICS or generate 3.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

THRACE PLASTICS  vs.  Komercn banka as

THRACE PLASTICS

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in THRACE PLASTICS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, THRACE PLASTICS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Komercn banka as

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Komercn banka as are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Komercní Banka may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with THRACE PLASTICS and Komercní Banka

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

The idea behind THRACE PLASTICS and Komercn banka as 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.