Correlation Between XSpring Capital and Sea Oil
Can any of the company-specific risk be diversified away by investing in both XSpring Capital 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 XSpring Capital and Sea Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XSpring Capital Public and Sea Oil Public, you can compare the effects of market volatilities on XSpring Capital 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 XSpring Capital with a short position of Sea Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of XSpring Capital and Sea Oil.
Diversification Opportunities for XSpring Capital and Sea Oil
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between XSpring and Sea is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding XSpring Capital 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 XSpring Capital 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 XSpring Capital 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 XSpring Capital i.e., XSpring Capital and Sea Oil go up and down completely randomly.
Pair Corralation between XSpring Capital and Sea Oil
Assuming the 90 days trading horizon XSpring Capital Public is expected to under-perform the Sea Oil. In addition to that, XSpring Capital is 1.8 times more volatile than Sea Oil Public. It trades about -0.05 of its total potential returns per unit of risk. Sea Oil Public is currently generating about 0.03 per unit of volatility. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XSpring Capital Public vs. Sea Oil Public
Performance |
| Timeline |
| XSpring Capital Public |
| Sea Oil Public |
XSpring Capital and Sea Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XSpring Capital and Sea Oil
The main advantage of trading using opposite XSpring Capital and Sea Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XSpring Capital 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.| XSpring Capital vs. TMBThanachart Bank Public | XSpring Capital vs. Ngern Tid Lor | XSpring Capital vs. Jay Mart Public | XSpring Capital vs. Sri Trang Gloves |
| Sea Oil vs. Star Petroleum Refining | Sea Oil vs. Power Solution Technologies | Sea Oil vs. Kingsmen CMTI Public | Sea Oil vs. Project Planning Service |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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