Correlation Between Autocorp Holding and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Thai 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 Thai 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 Thai Oil Public, you can compare the effects of market volatilities on Autocorp Holding and Thai 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 Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Thai Oil.
Diversification Opportunities for Autocorp Holding and Thai Oil
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Autocorp and Thai is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Thai Oil go up and down completely randomly.
Pair Corralation between Autocorp Holding and Thai Oil
Assuming the 90 days trading horizon Autocorp Holding is expected to generate 2.01 times less return on investment than Thai Oil. But when comparing it to its historical volatility, Autocorp Holding Public is 1.41 times less risky than Thai Oil. It trades about 0.08 of its potential returns per unit of risk. Thai Oil Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,625 in Thai Oil Public on September 2, 2024 and sell it today you would lose (850.00) from holding Thai Oil Public or give up 18.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autocorp Holding Public vs. Thai Oil Public
Performance |
| Timeline |
| Autocorp Holding Public |
| Thai Oil Public |
Autocorp Holding and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and Thai Oil
The main advantage of trading using opposite Autocorp Holding and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Thai 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 Thai Oil will offset losses from the drop in Thai 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 |
| Thai Oil vs. Star Petroleum Refining | Thai Oil vs. Power Solution Technologies | Thai Oil vs. Kingsmen CMTI Public | Thai Oil vs. Project Planning Service |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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