Correlation Between Oracle and Thai Capital
Can any of the company-specific risk be diversified away by investing in both Oracle and Thai 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 Thai Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Thai Capital, you can compare the effects of market volatilities on Oracle and Thai 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 Thai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Thai Capital.
Diversification Opportunities for Oracle and Thai Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oracle and Thai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Thai Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Capital 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 Thai Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Capital has no effect on the direction of Oracle i.e., Oracle and Thai Capital go up and down completely randomly.
Pair Corralation between Oracle and Thai Capital
Given the investment horizon of 90 days Oracle is expected to generate 0.71 times more return on investment than Thai Capital. However, Oracle is 1.41 times less risky than Thai Capital. It trades about 0.17 of its potential returns per unit of risk. Thai Capital is currently generating about -0.31 per unit of risk. If you would invest 16,959 in Oracle on September 4, 2024 and sell it today you would earn a total of 1,182 from holding Oracle or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oracle vs. Thai Capital
Performance |
| Timeline |
| Oracle |
| Thai Capital |
Oracle and Thai Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Thai Capital
The main advantage of trading using opposite Oracle and Thai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Thai 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 Thai Capital will offset losses from the drop in Thai Capital's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Thai Capital vs. Asia Aviation Public | Thai Capital vs. Bangkok Dusit Medical | Thai Capital vs. Bangkok Expressway and | Thai Capital 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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