Correlation Between GULF ENERGY and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both GULF ENERGY and Autocorp Holding 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 GULF ENERGY and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GULF ENERGY DEVELOPMENT NVDR and Autocorp Holding Public, you can compare the effects of market volatilities on GULF ENERGY and Autocorp Holding 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 GULF ENERGY with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GULF ENERGY and Autocorp Holding.
Diversification Opportunities for GULF ENERGY and Autocorp Holding
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between GULF and Autocorp is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding GULF ENERGY DEVELOPMENT NVDR and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and GULF ENERGY 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 GULF ENERGY DEVELOPMENT NVDR are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of GULF ENERGY i.e., GULF ENERGY and Autocorp Holding go up and down completely randomly.
Pair Corralation between GULF ENERGY and Autocorp Holding
Assuming the 90 days trading horizon GULF ENERGY is expected to generate 31.22 times less return on investment than Autocorp Holding. But when comparing it to its historical volatility, GULF ENERGY DEVELOPMENT NVDR is 32.87 times less risky than Autocorp Holding. It trades about 0.08 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 125.00 in Autocorp Holding Public on September 2, 2024 and sell it today you would lose (36.00) from holding Autocorp Holding Public or give up 28.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GULF ENERGY DEVELOPMENT NVDR vs. Autocorp Holding Public
Performance |
| Timeline |
| GULF ENERGY DEVELOPMENT |
| Autocorp Holding Public |
GULF ENERGY and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GULF ENERGY and Autocorp Holding
The main advantage of trading using opposite GULF ENERGY and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GULF ENERGY position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| GULF ENERGY vs. Thai Oil Public | GULF ENERGY vs. Electricity Generating Public | GULF ENERGY vs. Ratch Group Public |
| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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