Correlation Between Sea Oil and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both Sea Oil and Autocorp Holding 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 Sea Oil and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea Oil Public and Autocorp Holding Public, you can compare the effects of market volatilities on Sea Oil and Autocorp Holding 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 Sea Oil with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea Oil and Autocorp Holding.
Diversification Opportunities for Sea Oil and Autocorp Holding
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sea and Autocorp is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sea Oil Public and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and Sea Oil 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 Sea Oil Public are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of Sea Oil i.e., Sea Oil and Autocorp Holding go up and down completely randomly.
Pair Corralation between Sea Oil and Autocorp Holding
Assuming the 90 days trading horizon Sea Oil Public is expected to generate 0.85 times more return on investment than Autocorp Holding. However, Sea Oil Public is 1.18 times less risky than Autocorp Holding. It trades about 0.03 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about -0.25 per unit of risk. If you would invest 254.00 in Sea Oil Public on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Sea Oil Public or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sea Oil Public vs. Autocorp Holding Public
Performance |
| Timeline |
| Sea Oil Public |
| Autocorp Holding Public |
Sea Oil and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea Oil and Autocorp Holding
The main advantage of trading using opposite Sea Oil and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea Oil position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| Sea Oil vs. Star Petroleum Refining | Sea Oil vs. Power Solution Technologies | Sea Oil vs. Kingsmen CMTI Public | Sea Oil vs. Project Planning Service |
| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering Public |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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