Correlation Between ONE Enterprise and Thai Oil
Can any of the company-specific risk be diversified away by investing in both ONE Enterprise 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 ONE Enterprise and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The ONE Enterprise and Thai Oil Public, you can compare the effects of market volatilities on ONE Enterprise 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 ONE Enterprise with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONE Enterprise and Thai Oil.
Diversification Opportunities for ONE Enterprise and Thai Oil
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between ONE and Thai is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding The ONE Enterprise 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 ONE Enterprise 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 The ONE Enterprise 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 ONE Enterprise i.e., ONE Enterprise and Thai Oil go up and down completely randomly.
Pair Corralation between ONE Enterprise and Thai Oil
Assuming the 90 days trading horizon The ONE Enterprise is expected to generate 0.42 times more return on investment than Thai Oil. However, The ONE Enterprise is 2.37 times less risky than Thai Oil. It trades about -0.14 of its potential returns per unit of risk. Thai Oil Public is currently generating about -0.21 per unit of risk. If you would invest 394.00 in The ONE Enterprise on August 27, 2024 and sell it today you would lose (16.00) from holding The ONE Enterprise or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The ONE Enterprise vs. Thai Oil Public
Performance |
| Timeline |
| ONE Enterprise |
| Thai Oil Public |
ONE Enterprise and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONE Enterprise and Thai Oil
The main advantage of trading using opposite ONE Enterprise and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONE Enterprise 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.The idea behind The ONE Enterprise and Thai Oil Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Thai Oil vs. Krung Thai Bank | Thai Oil vs. Thai Union Group | Thai Oil vs. PTT Public | Thai Oil vs. PTT Exploration and |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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