Correlation Between Thai Oil and True Public
Can any of the company-specific risk be diversified away by investing in both Thai Oil and True Public 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 True Public 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 True Public, you can compare the effects of market volatilities on Thai Oil and True Public 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 True Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Oil and True Public.
Diversification Opportunities for Thai Oil and True Public
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thai and True is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Thai Oil Public and True Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True 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 True Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Public has no effect on the direction of Thai Oil i.e., Thai Oil and True Public go up and down completely randomly.
Pair Corralation between Thai Oil and True Public
Assuming the 90 days trading horizon Thai Oil is expected to generate 1.38 times less return on investment than True Public. In addition to that, Thai Oil is 1.32 times more volatile than True Public. It trades about 0.08 of its total potential returns per unit of risk. True Public is currently generating about 0.14 per unit of volatility. If you would invest 1,120 in True Public on October 23, 2024 and sell it today you would earn a total of 70.00 from holding True Public or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Oil Public vs. True Public
Performance |
| Timeline |
| Thai Oil Public |
| True Public |
Thai Oil and True Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Oil and True Public
The main advantage of trading using opposite Thai Oil and True Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Oil position performs unexpectedly, True Public 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 True Public will offset losses from the drop in True Public's long position.| Thai Oil vs. CSP Steel Center | Thai Oil vs. Ekachai Medical Care | Thai Oil vs. ALT Telecom Public | Thai Oil vs. DOHOME |
| True Public vs. Advanced Info Service | True Public vs. PTT Public | True Public vs. Charoen Pokphand Foods | True Public vs. SCB X 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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