Correlation Between Oracle and Thanachart Capital
Can any of the company-specific risk be diversified away by investing in both Oracle and Thanachart Capital 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 Oracle and Thanachart Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Thanachart Capital Public, you can compare the effects of market volatilities on Oracle and Thanachart Capital 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 Oracle with a short position of Thanachart Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Thanachart Capital.
Diversification Opportunities for Oracle and Thanachart Capital
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oracle and Thanachart is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Thanachart Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanachart Capital Public and Oracle 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 Oracle are associated (or correlated) with Thanachart Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanachart Capital Public has no effect on the direction of Oracle i.e., Oracle and Thanachart Capital go up and down completely randomly.
Pair Corralation between Oracle and Thanachart Capital
Given the investment horizon of 90 days Oracle is expected to generate 135.52 times less return on investment than Thanachart Capital. But when comparing it to its historical volatility, Oracle is 93.09 times less risky than Thanachart Capital. It trades about 0.1 of its potential returns per unit of risk. Thanachart Capital Public is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,945 in Thanachart Capital Public on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Thanachart Capital Public or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Oracle vs. Thanachart Capital Public
Performance |
| Timeline |
| Oracle |
| Thanachart Capital Public |
Oracle and Thanachart Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Thanachart Capital
The main advantage of trading using opposite Oracle and Thanachart Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Thanachart Capital 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 Thanachart Capital will offset losses from the drop in Thanachart Capital's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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