Correlation Between PTT OIL+RETBUS-FOR-B and Thai Oil
Can any of the company-specific risk be diversified away by investing in both PTT OIL+RETBUS-FOR-B and Thai 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 PTT OIL+RETBUS-FOR-B and Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT OILRETBUS FOR BA10 and Thai Oil Public, you can compare the effects of market volatilities on PTT OIL+RETBUS-FOR-B and Thai 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 PTT OIL+RETBUS-FOR-B with a short position of Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL+RETBUS-FOR-B and Thai Oil.
Diversification Opportunities for PTT OIL+RETBUS-FOR-B and Thai Oil
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and Thai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding PTT OILRETBUS FOR BA10 and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil Public and PTT OIL+RETBUS-FOR-B 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 PTT OILRETBUS FOR BA10 are associated (or correlated) with Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of PTT OIL+RETBUS-FOR-B i.e., PTT OIL+RETBUS-FOR-B and Thai Oil go up and down completely randomly.
Pair Corralation between PTT OIL+RETBUS-FOR-B and Thai Oil
Assuming the 90 days horizon PTT OILRETBUS FOR BA10 is expected to under-perform the Thai Oil. But the stock apears to be less risky and, when comparing its historical volatility, PTT OILRETBUS FOR BA10 is 1.7 times less risky than Thai Oil. The stock trades about -0.16 of its potential returns per unit of risk. The Thai Oil Public is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Thai Oil Public on September 2, 2024 and sell it today you would lose (7.00) from holding Thai Oil Public or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT OILRETBUS FOR BA10 vs. Thai Oil Public
Performance |
| Timeline |
| PTT OIL+RETBUS-FOR-B |
| Thai Oil Public |
PTT OIL+RETBUS-FOR-B and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT OIL+RETBUS-FOR-B and Thai Oil
The main advantage of trading using opposite PTT OIL+RETBUS-FOR-B and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL+RETBUS-FOR-B position performs unexpectedly, Thai 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 Thai Oil will offset losses from the drop in Thai Oil's long position.| PTT OIL+RETBUS-FOR-B vs. Superior Plus Corp | PTT OIL+RETBUS-FOR-B vs. NMI Holdings | PTT OIL+RETBUS-FOR-B vs. Origin Agritech | PTT OIL+RETBUS-FOR-B vs. SIVERS SEMICONDUCTORS AB |
| Thai Oil vs. Thai Oil Public | Thai Oil vs. IRPC Public | Thai Oil vs. Sinopec Shanghai Petrochemical | Thai Oil vs. IRPC PCL NVDR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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