Correlation Between Cumulus Media and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Cumulus Media 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 Cumulus Media and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cumulus Media Class and Thai Oil Public, you can compare the effects of market volatilities on Cumulus Media 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 Cumulus Media with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Thai Oil.
Diversification Opportunities for Cumulus Media and Thai Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cumulus and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class 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 Cumulus Media 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 Cumulus Media Class 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 Cumulus Media i.e., Cumulus Media and Thai Oil go up and down completely randomly.
Pair Corralation between Cumulus Media and Thai Oil
Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the Thai Oil. In addition to that, Cumulus Media is 5.69 times more volatile than Thai Oil Public. It trades about -0.14 of its total potential returns per unit of risk. Thai Oil Public is currently generating about -0.12 per unit of volatility. If you would invest 157.00 in Thai Oil Public on September 4, 2024 and sell it today you would lose (13.00) from holding Thai Oil Public or give up 8.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 35.63% |
| Values | Daily Returns |
Cumulus Media Class vs. Thai Oil Public
Performance |
| Timeline |
| Cumulus Media Class |
| Thai Oil Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cumulus Media and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and Thai Oil
The main advantage of trading using opposite Cumulus Media and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media 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.| Cumulus Media vs. Marchex | Cumulus Media vs. Direct Digital Holdings | Cumulus Media vs. Cimpress NV | Cumulus Media vs. Emerald Expositions Events |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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