Correlation Between Ross Stores and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Ross Stores 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 Ross Stores and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ross Stores and Thai Oil Public, you can compare the effects of market volatilities on Ross Stores 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 Ross Stores with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and Thai Oil.
Diversification Opportunities for Ross Stores and Thai Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ross and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores 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 Ross Stores 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 Ross Stores 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 Ross Stores i.e., Ross Stores and Thai Oil go up and down completely randomly.
Pair Corralation between Ross Stores and Thai Oil
If you would invest (100.00) in Thai Oil Public on November 30, 2024 and sell it today you would earn a total of 100.00 from holding Thai Oil Public or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ross Stores vs. Thai Oil Public
Performance |
| Timeline |
| Ross Stores |
| Thai Oil Public |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Ross Stores and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ross Stores and Thai Oil
The main advantage of trading using opposite Ross Stores and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ross Stores 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.| Ross Stores vs. Burlington Stores | Ross Stores vs. American Eagle Outfitters | Ross Stores vs. Lululemon Athletica | Ross Stores vs. Foot Locker |
| Thai Oil vs. Sonos Inc | Thai Oil vs. BrilliA | Thai Oil vs. Canada Goose Holdings | Thai Oil vs. Playstudios |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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