Correlation Between Thrace Plastics and Intracom Constructions

Can any of the company-specific risk be diversified away by investing in both Thrace Plastics and Intracom Constructions 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 Intracom Constructions 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 Intracom Constructions Societe, you can compare the effects of market volatilities on Thrace Plastics and Intracom Constructions 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 Intracom Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrace Plastics and Intracom Constructions.

Diversification Opportunities for Thrace Plastics and Intracom Constructions

0.08

Correlation Coefficient

Thrace Plastics  Intracom Constructions

Significant diversification

The 3 months correlation between Thrace and Intracom is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Thrace Plastics Holding and Intracom Constructions Societe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Constructions 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 Intracom Constructions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracom Constructions has no effect on the direction of Thrace Plastics i.e., Thrace Plastics and Intracom Constructions go up and down completely randomly.

Pair Corralation between Thrace Plastics and Intracom Constructions

Assuming the 90 days trading horizon Thrace Plastics is expected to generate 13.47 times less return on investment than Intracom Constructions. In addition to that, Thrace Plastics is 1.01 times more volatile than Intracom Constructions Societe. It trades about 0.02 of its total potential returns per unit of risk. Intracom Constructions Societe is currently generating about 0.21 per unit of volatility. If you would invest  498.00  in Intracom Constructions Societe on April 24, 2025 and sell it today you would earn a total of  101.00  from holding Intracom Constructions Societe or generate 20.28% 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.  Intracom Constructions Societe

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.

Intracom Constructions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intracom Constructions Societe are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intracom Constructions sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thrace Plastics and Intracom Constructions

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

The idea behind Thrace Plastics Holding and Intracom Constructions Societe 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.