Correlation Between Ocean Glass and OHTL Public
Can any of the company-specific risk be diversified away by investing in both Ocean Glass and OHTL 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 Ocean Glass and OHTL Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Glass Public and OHTL Public, you can compare the effects of market volatilities on Ocean Glass and OHTL 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 Ocean Glass with a short position of OHTL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Glass and OHTL Public.
Diversification Opportunities for Ocean Glass and OHTL Public
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ocean and OHTL is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Glass Public and OHTL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OHTL Public and Ocean Glass 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 Ocean Glass Public are associated (or correlated) with OHTL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OHTL Public has no effect on the direction of Ocean Glass i.e., Ocean Glass and OHTL Public go up and down completely randomly.
Pair Corralation between Ocean Glass and OHTL Public
Assuming the 90 days trading horizon Ocean Glass Public is expected to generate 1.0 times more return on investment than OHTL Public. However, Ocean Glass is 1.0 times more volatile than OHTL Public. It trades about 0.04 of its potential returns per unit of risk. OHTL Public is currently generating about 0.04 per unit of risk. If you would invest 2,355 in Ocean Glass Public on September 4, 2024 and sell it today you would lose (455.00) from holding Ocean Glass Public or give up 19.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ocean Glass Public vs. OHTL Public
Performance |
| Timeline |
| Ocean Glass Public |
| OHTL Public |
Ocean Glass and OHTL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Glass and OHTL Public
The main advantage of trading using opposite Ocean Glass and OHTL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Glass position performs unexpectedly, OHTL 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 OHTL Public will offset losses from the drop in OHTL Public's long position.| Ocean Glass vs. Central Pattana Public | Ocean Glass vs. CP ALL Public | Ocean Glass vs. Bangkok Dusit Medical | Ocean Glass vs. Airports of Thailand |
| OHTL Public vs. Central Pattana Public | OHTL Public vs. CP ALL Public | OHTL Public vs. Bangkok Dusit Medical | OHTL Public vs. Airports of Thailand |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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