Correlation Between Oriental Petroleum and STI Education
Can any of the company-specific risk be diversified away by investing in both Oriental Petroleum and STI Education 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 Oriental Petroleum and STI Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Petroleum and and STI Education Systems, you can compare the effects of market volatilities on Oriental Petroleum and STI Education 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 Oriental Petroleum with a short position of STI Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Petroleum and STI Education.
Diversification Opportunities for Oriental Petroleum and STI Education
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oriental and STI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Petroleum and and STI Education Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STI Education Systems and Oriental Petroleum 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 Oriental Petroleum and are associated (or correlated) with STI Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STI Education Systems has no effect on the direction of Oriental Petroleum i.e., Oriental Petroleum and STI Education go up and down completely randomly.
Pair Corralation between Oriental Petroleum and STI Education
Assuming the 90 days trading horizon Oriental Petroleum and is expected to under-perform the STI Education. In addition to that, Oriental Petroleum is 1.53 times more volatile than STI Education Systems. It trades about 0.0 of its total potential returns per unit of risk. STI Education Systems is currently generating about 0.15 per unit of volatility. If you would invest 57.00 in STI Education Systems on November 3, 2024 and sell it today you would earn a total of 83.00 from holding STI Education Systems or generate 145.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 35.83% |
| Values | Daily Returns |
Oriental Petroleum and vs. STI Education Systems
Performance |
| Timeline |
| Oriental Petroleum and |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| STI Education Systems |
Oriental Petroleum and STI Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Petroleum and STI Education
The main advantage of trading using opposite Oriental Petroleum and STI Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Petroleum position performs unexpectedly, STI Education 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 STI Education will offset losses from the drop in STI Education's long position.| Oriental Petroleum vs. Asia United Bank | Oriental Petroleum vs. Lepanto Consolidated Mining | Oriental Petroleum vs. Robinsons Retail Holdings | Oriental Petroleum vs. Prime Media Holdings |
| STI Education vs. House of Investments | STI Education vs. Asia United Bank | STI Education vs. SM Investments Corp | STI Education vs. Jollibee Foods Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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