Correlation Between Italian Thai and OCC Public
Can any of the company-specific risk be diversified away by investing in both Italian Thai and OCC Public 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 Italian Thai and OCC Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Italian Thai Development Public and OCC Public, you can compare the effects of market volatilities on Italian Thai and OCC Public 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 Italian Thai with a short position of OCC Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Italian Thai and OCC Public.
Diversification Opportunities for Italian Thai and OCC Public
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Italian and OCC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Italian Thai Development Publi and OCC Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCC Public and Italian Thai 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 Italian Thai Development Public are associated (or correlated) with OCC Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCC Public has no effect on the direction of Italian Thai i.e., Italian Thai and OCC Public go up and down completely randomly.
Pair Corralation between Italian Thai and OCC Public
Assuming the 90 days trading horizon Italian Thai Development Public is expected to under-perform the OCC Public. In addition to that, Italian Thai is 7.59 times more volatile than OCC Public. It trades about -0.08 of its total potential returns per unit of risk. OCC Public is currently generating about 0.29 per unit of volatility. If you would invest 895.00 in OCC Public on September 14, 2024 and sell it today you would earn a total of 20.00 from holding OCC Public or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Italian Thai Development Publi vs. OCC Public
Performance |
| Timeline |
| Italian Thai Develop |
| OCC Public |
Italian Thai and OCC Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Italian Thai and OCC Public
The main advantage of trading using opposite Italian Thai and OCC Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Italian Thai position performs unexpectedly, OCC Public 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 OCC Public will offset losses from the drop in OCC Public's long position.| Italian Thai vs. Land and Houses | Italian Thai vs. CH Karnchang Public | Italian Thai vs. Krung Thai Bank | Italian Thai vs. Bangkok Bank Public |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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