Correlation Between Amir Marketing and Polyram Plastic

Can any of the company-specific risk be diversified away by investing in both Amir Marketing and Polyram Plastic 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 Amir Marketing and Polyram Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amir Marketing and and Polyram Plastic Industries, you can compare the effects of market volatilities on Amir Marketing and Polyram Plastic 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 Amir Marketing with a short position of Polyram Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amir Marketing and Polyram Plastic.

Diversification Opportunities for Amir Marketing and Polyram Plastic

0.49

Correlation Coefficient

Amir Marketing  Polyram Plastic

Very weak diversification

The 3 months correlation between Amir and Polyram is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Amir Marketing and and Polyram Plastic Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyram Plastic Indu and Amir Marketing 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 Amir Marketing and are associated (or correlated) with Polyram Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyram Plastic Indu has no effect on the direction of Amir Marketing i.e., Amir Marketing and Polyram Plastic go up and down completely randomly.

Pair Corralation between Amir Marketing and Polyram Plastic

Assuming the 90 days trading horizon Amir Marketing and is expected to under-perform the Polyram Plastic. But the stock apears to be less risky and, when comparing its historical volatility, Amir Marketing and is 1.15 times less risky than Polyram Plastic. The stock trades about -0.01 of its potential returns per unit of risk. The Polyram Plastic Industries is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  102,522  in Polyram Plastic Industries on April 24, 2025 and sell it today you would earn a total of  10,278  from holding Polyram Plastic Industries or generate 10.03% return on investment over 90 days.

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

Amir Marketing and  vs.  Polyram Plastic Industries

Amir Marketing

Risk-Adjusted Performance

Weak

Over the last 90 days Amir Marketing and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Amir Marketing is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Polyram Plastic Indu

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Polyram Plastic Industries are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Polyram Plastic sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amir Marketing and Polyram Plastic

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

The idea behind Amir Marketing and and Polyram Plastic Industries 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.