Correlation Between ENEOS Holdings and Thai Oil
Can any of the company-specific risk be diversified away by investing in both ENEOS Holdings 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 ENEOS Holdings and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENEOS Holdings and Thai Oil Public, you can compare the effects of market volatilities on ENEOS Holdings 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 ENEOS Holdings with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENEOS Holdings and Thai Oil.
Diversification Opportunities for ENEOS Holdings and Thai Oil
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ENEOS and Thai is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ENEOS Holdings 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 ENEOS Holdings 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 ENEOS Holdings 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 ENEOS Holdings i.e., ENEOS Holdings and Thai Oil go up and down completely randomly.
Pair Corralation between ENEOS Holdings and Thai Oil
Assuming the 90 days horizon ENEOS Holdings is expected to generate 0.86 times more return on investment than Thai Oil. However, ENEOS Holdings is 1.16 times less risky than Thai Oil. It trades about 0.17 of its potential returns per unit of risk. Thai Oil Public is currently generating about -0.08 per unit of risk. If you would invest 454.00 in ENEOS Holdings on September 12, 2024 and sell it today you would earn a total of 38.00 from holding ENEOS Holdings or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ENEOS Holdings vs. Thai Oil Public
Performance |
| Timeline |
| ENEOS Holdings |
| Thai Oil Public |
ENEOS Holdings and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENEOS Holdings and Thai Oil
The main advantage of trading using opposite ENEOS Holdings and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENEOS Holdings 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.| ENEOS Holdings vs. Superior Plus Corp | ENEOS Holdings vs. SIVERS SEMICONDUCTORS AB | ENEOS Holdings vs. Norsk Hydro ASA | ENEOS Holdings vs. Reliance Steel Aluminum |
| Thai Oil vs. Superior Plus Corp | Thai Oil vs. SIVERS SEMICONDUCTORS AB | Thai Oil vs. Norsk Hydro ASA | Thai Oil vs. Reliance Steel Aluminum |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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