Correlation Between AJ Plast and Alucon Public

Can any of the company-specific risk be diversified away by investing in both AJ Plast and Alucon Public 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 AJ Plast and Alucon Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for AJ Plast and Alucon Public

0.02

Correlation Coefficient

AJ Plast  Alucon Public

Significant diversification

The 3 months correlation between AJ Plast and Alucon is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AJ Plast Public and Alucon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alucon Public and AJ Plast 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 AJ Plast Public are associated (or correlated) with Alucon Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alucon Public has no effect on the direction of AJ Plast i.e., AJ Plast and Alucon Public go up and down completely randomly.

Pair Corralation between AJ Plast and Alucon Public

Assuming the 90 days horizon AJ Plast Public is expected to generate 11.27 times more return on investment than Alucon Public. However, AJ Plast is 11.27 times more volatile than Alucon Public. It trades about 0.09 of its potential returns per unit of risk. Alucon Public is currently generating about 0.19 per unit of risk. If you would invest  200.00  in AJ Plast Public on April 24, 2025 and sell it today you would earn a total of  46.00  from holding AJ Plast Public or generate 23.0% return on investment over 90 days.

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

AJ Plast Public  vs.  Alucon Public

AJ Plast Public

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AJ Plast Public are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, AJ Plast disclosed solid returns over the last few months and may actually be approaching a breakup point.

Alucon Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alucon Public are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Alucon Public may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with AJ Plast and Alucon Public

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

The idea behind AJ Plast Public and Alucon 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.