Correlation Between Accenture Plc and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Accenture Plc 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 Accenture Plc and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Thai Oil Public, you can compare the effects of market volatilities on Accenture Plc 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 Accenture Plc with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Thai Oil.
Diversification Opportunities for Accenture Plc and Thai Oil
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accenture and Thai is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc 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 Accenture Plc 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 Accenture plc 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 Accenture Plc i.e., Accenture Plc and Thai Oil go up and down completely randomly.
Pair Corralation between Accenture Plc and Thai Oil
Assuming the 90 days horizon Accenture plc is expected to generate 0.66 times more return on investment than Thai Oil. However, Accenture plc is 1.51 times less risky than Thai Oil. It trades about 0.14 of its potential returns per unit of risk. Thai Oil Public is currently generating about -0.06 per unit of risk. If you would invest 26,554 in Accenture plc on September 3, 2024 and sell it today you would earn a total of 7,931 from holding Accenture plc or generate 29.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accenture plc vs. Thai Oil Public
Performance |
| Timeline |
| Accenture plc |
| Thai Oil Public |
Accenture Plc and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and Thai Oil
The main advantage of trading using opposite Accenture Plc and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc 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.| Accenture Plc vs. Sunny Optical Technology | Accenture Plc vs. X FAB Silicon Foundries | Accenture Plc vs. Micron Technology | Accenture Plc vs. Align Technology |
| Thai Oil vs. Thai Oil Public | Thai Oil vs. IRPC Public | Thai Oil vs. Sinopec Shanghai Petrochemical | Thai Oil vs. IRPC PCL NVDR |
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 CEOs Directory module to screen CEOs from public companies around the world.
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