Correlation Between Chuangs China and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and Thai Oil Public, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Thai Oil.
Diversification Opportunities for Chuangs China and Thai Oil
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chuangs and Thai is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments 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 Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and Thai Oil go up and down completely randomly.
Pair Corralation between Chuangs China and Thai Oil
If you would invest 1.00 in Chuangs China Investments on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chuangs China Investments vs. Thai Oil Public
Performance |
| Timeline |
| Chuangs China Investments |
| Thai Oil Public |
Chuangs China and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and Thai Oil
The main advantage of trading using opposite Chuangs China and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.| Chuangs China vs. RCM TECHNOLOGIES | Chuangs China vs. Spirent Communications plc | Chuangs China vs. CITIC Telecom International | Chuangs China vs. Lion Biotechnologies |
| Thai Oil vs. EVS Broadcast Equipment | Thai Oil vs. TRAINLINE PLC LS | Thai Oil vs. COPLAND ROAD CAPITAL | Thai Oil vs. Thai Beverage Public |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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