Correlation Between Takuni Group and Sea Oil
Can any of the company-specific risk be diversified away by investing in both Takuni Group and Sea 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 Takuni Group and Sea Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takuni Group Public and Sea Oil Public, you can compare the effects of market volatilities on Takuni Group and Sea 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 Takuni Group with a short position of Sea Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takuni Group and Sea Oil.
Diversification Opportunities for Takuni Group and Sea Oil
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Takuni and Sea is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Takuni Group Public and Sea Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea Oil Public and Takuni Group 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 Takuni Group Public are associated (or correlated) with Sea Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea Oil Public has no effect on the direction of Takuni Group i.e., Takuni Group and Sea Oil go up and down completely randomly.
Pair Corralation between Takuni Group and Sea Oil
Assuming the 90 days trading horizon Takuni Group Public is expected to generate 81.33 times more return on investment than Sea Oil. However, Takuni Group is 81.33 times more volatile than Sea Oil Public. It trades about 0.12 of its potential returns per unit of risk. Sea Oil Public is currently generating about 0.05 per unit of risk. If you would invest 0.00 in Takuni Group Public on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Takuni Group Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Takuni Group Public vs. Sea Oil Public
Performance |
| Timeline |
| Takuni Group Public |
| Sea Oil Public |
Takuni Group and Sea Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takuni Group and Sea Oil
The main advantage of trading using opposite Takuni Group and Sea Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takuni Group position performs unexpectedly, Sea 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 Sea Oil will offset losses from the drop in Sea Oil's long position.| Takuni Group vs. Sea Oil Public | Takuni Group vs. SVOA Public | Takuni Group vs. TV Thunder Public | Takuni Group vs. Eureka Design Public |
| Sea Oil vs. PTT Oil and | Sea Oil vs. Thai Oil Public | Sea Oil vs. Thai Oil Public | Sea Oil vs. IRPC 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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