Correlation Between Thai Oil and Nex Point
Can any of the company-specific risk be diversified away by investing in both Thai Oil and Nex Point 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 Thai Oil and Nex Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Oil Public and Nex Point Public, you can compare the effects of market volatilities on Thai Oil and Nex Point 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 Thai Oil with a short position of Nex Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Oil and Nex Point.
Diversification Opportunities for Thai Oil and Nex Point
Weak diversification
The 3 months correlation between Thai and Nex is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Thai Oil Public and Nex Point Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nex Point Public and Thai 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 Thai Oil Public are associated (or correlated) with Nex Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nex Point Public has no effect on the direction of Thai Oil i.e., Thai Oil and Nex Point go up and down completely randomly.
Pair Corralation between Thai Oil and Nex Point
Assuming the 90 days trading horizon Thai Oil Public is expected to generate 0.74 times more return on investment than Nex Point. However, Thai Oil Public is 1.36 times less risky than Nex Point. It trades about -0.26 of its potential returns per unit of risk. Nex Point Public is currently generating about -0.33 per unit of risk. If you would invest 4,625 in Thai Oil Public on August 31, 2024 and sell it today you would lose (900.00) from holding Thai Oil Public or give up 19.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Oil Public vs. Nex Point Public
Performance |
| Timeline |
| Thai Oil Public |
| Nex Point Public |
Thai Oil and Nex Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Oil and Nex Point
The main advantage of trading using opposite Thai Oil and Nex Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Oil position performs unexpectedly, Nex Point 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 Nex Point will offset losses from the drop in Nex Point's long position.| Thai Oil vs. Krung Thai Bank | Thai Oil vs. Thai Union Group | Thai Oil vs. PTT Public | Thai Oil vs. Supalai Public |
| Nex Point vs. GULF ENERGY DEVELOPMENT NVDR | Nex Point vs. Kiatnakin Phatra Bank | Nex Point vs. Thai Oil Public | Nex Point vs. The Erawan Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |