Correlation Between Lampsa Hellenic and Thrace Plastics

Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and Thrace Plastics 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 Lampsa Hellenic and Thrace Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lampsa Hellenic Hotels and Thrace Plastics Holding, you can compare the effects of market volatilities on Lampsa Hellenic and Thrace Plastics 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 Lampsa Hellenic with a short position of Thrace Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Thrace Plastics.

Diversification Opportunities for Lampsa Hellenic and Thrace Plastics

-0.28

Correlation Coefficient

Lampsa Hellenic  Thrace Plastics

Very good diversification

The 3 months correlation between Lampsa and Thrace is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Thrace Plastics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrace Plastics Holding and Lampsa Hellenic 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 Lampsa Hellenic Hotels are associated (or correlated) with Thrace Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrace Plastics Holding has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Thrace Plastics go up and down completely randomly.

Pair Corralation between Lampsa Hellenic and Thrace Plastics

Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.51 times more return on investment than Thrace Plastics. However, Lampsa Hellenic Hotels is 1.96 times less risky than Thrace Plastics. It trades about 0.17 of its potential returns per unit of risk. Thrace Plastics Holding is currently generating about 0.02 per unit of risk. If you would invest  3,700  in Lampsa Hellenic Hotels on April 24, 2025 and sell it today you would earn a total of  300.00  from holding Lampsa Hellenic Hotels or generate 8.11% return on investment over 90 days.

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

Lampsa Hellenic Hotels  vs.  Thrace Plastics Holding

Lampsa Hellenic Hotels

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lampsa Hellenic Hotels are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Lampsa Hellenic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Thrace Plastics Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Thrace Plastics Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Thrace Plastics is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lampsa Hellenic and Thrace Plastics

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

The idea behind Lampsa Hellenic Hotels and Thrace Plastics Holding 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.