Correlation Between RCS MediaGroup and Thai Oil
Can any of the company-specific risk be diversified away by investing in both RCS MediaGroup 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 RCS MediaGroup and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCS MediaGroup SpA and Thai Oil Public, you can compare the effects of market volatilities on RCS MediaGroup 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 RCS MediaGroup with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and Thai Oil.
Diversification Opportunities for RCS MediaGroup and Thai Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RCS and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA 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 RCS MediaGroup 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 RCS MediaGroup SpA 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 RCS MediaGroup i.e., RCS MediaGroup and Thai Oil go up and down completely randomly.
Pair Corralation between RCS MediaGroup and Thai Oil
Assuming the 90 days horizon RCS MediaGroup SpA is expected to generate 1.44 times more return on investment than Thai Oil. However, RCS MediaGroup is 1.44 times more volatile than Thai Oil Public. It trades about 0.05 of its potential returns per unit of risk. Thai Oil Public is currently generating about 0.05 per unit of risk. If you would invest 73.00 in RCS MediaGroup SpA on September 4, 2024 and sell it today you would earn a total of 16.00 from holding RCS MediaGroup SpA or generate 21.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 54.72% |
| Values | Daily Returns |
RCS MediaGroup SpA vs. Thai Oil Public
Performance |
| Timeline |
| RCS MediaGroup SpA |
| Thai Oil Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RCS MediaGroup and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCS MediaGroup and Thai Oil
The main advantage of trading using opposite RCS MediaGroup and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCS MediaGroup 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.| RCS MediaGroup vs. Legible | RCS MediaGroup vs. Sylvania Platinum Limited | RCS MediaGroup vs. Thunderbird Entertainment Group | RCS MediaGroup vs. PAX Global Technology |
| Thai Oil vs. Nexstar Broadcasting Group | Thai Oil vs. Yuexiu Transport Infrastructure | Thai Oil vs. Cumulus Media Class | Thai Oil vs. Kura Sushi USA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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