Correlation Between Thrace Plastics and Elastron

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

By analyzing existing cross correlation between Thrace Plastics Holding and Elastron SA , you can compare the effects of market volatilities on Thrace Plastics and Elastron 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 Elastron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Elastron.

Diversification Opportunities for Thrace Plastics and Elastron

0.03

Correlation Coefficient

Thrace Plastics  Elastron

Significant diversification

The 3 months correlation between Thrace and Elastron is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Elastron SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elastron SA 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 Holding are associated (or correlated) with Elastron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elastron SA has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Elastron go up and down completely randomly.

Pair Corralation between Thrace Plastics and Elastron

Assuming the 90 days trading horizon Thrace Plastics is expected to generate 10.21 times less return on investment than Elastron. But when comparing it to its historical volatility, Thrace Plastics Holding is 1.4 times less risky than Elastron. It trades about 0.02 of its potential returns per unit of risk. Elastron SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  220.00  in Elastron SA on April 24, 2025 and sell it today you would earn a total of  31.00  from holding Elastron SA or generate 14.09% return on investment over 90 days.

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

Thrace Plastics Holding  vs.  Elastron SA

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.

Elastron SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Elastron SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Elastron sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thrace Plastics and Elastron

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

The idea behind Thrace Plastics Holding and Elastron SA 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.