Correlation Between Yuexiu Transport and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Thai Oil Public, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Thai Oil.
Diversification Opportunities for Yuexiu Transport and Thai Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuexiu and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Thai Oil go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Thai Oil
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.62 times more return on investment than Thai Oil. However, Yuexiu Transport is 1.62 times more volatile than Thai Oil Public. It trades about 0.09 of its potential returns per unit of risk. Thai Oil Public is currently generating about 0.01 per unit of risk. If you would invest 20.00 in Yuexiu Transport Infrastructure on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Yuexiu Transport Infrastructure or generate 190.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 48.08% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Thai Oil Public
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Thai Oil Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yuexiu Transport and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Thai Oil
The main advantage of trading using opposite Yuexiu Transport and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility Corp |
| Thai Oil vs. Nexstar Broadcasting Group | Thai Oil vs. Yuexiu Transport Infrastructure | Thai Oil vs. Cumulus Media Class | Thai Oil vs. Kura Sushi USA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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