Correlation Between Autocorp Holding and Sea Oil
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Sea Oil 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 Autocorp Holding and Sea Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autocorp Holding Public and Sea Oil Public, you can compare the effects of market volatilities on Autocorp Holding and Sea Oil 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 Autocorp Holding with a short position of Sea Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Sea Oil.
Diversification Opportunities for Autocorp Holding and Sea Oil
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Autocorp and Sea is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Sea Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea Oil Public and Autocorp Holding 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 Autocorp Holding Public are associated (or correlated) with Sea Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea Oil Public has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Sea Oil go up and down completely randomly.
Pair Corralation between Autocorp Holding and Sea Oil
Assuming the 90 days trading horizon Autocorp Holding Public is expected to under-perform the Sea Oil. In addition to that, Autocorp Holding is 1.2 times more volatile than Sea Oil Public. It trades about -0.3 of its total potential returns per unit of risk. Sea Oil Public is currently generating about -0.04 per unit of volatility. If you would invest 260.00 in Sea Oil Public on September 3, 2024 and sell it today you would lose (4.00) from holding Sea Oil Public or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autocorp Holding Public vs. Sea Oil Public
Performance |
| Timeline |
| Autocorp Holding Public |
| Sea Oil Public |
Autocorp Holding and Sea Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and Sea Oil
The main advantage of trading using opposite Autocorp Holding and Sea Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Sea Oil 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 Sea Oil will offset losses from the drop in Sea Oil's long position.| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering Public |
| Sea Oil vs. PTT Oil and | Sea Oil vs. Thai Oil Public | Sea Oil vs. IRPC Public | Sea Oil vs. Star Petroleum Refining |
Check out your portfolio center.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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