Correlation Between PTT OIL+RETBUS-FOR-B and NESTE OYJ
Can any of the company-specific risk be diversified away by investing in both PTT OIL+RETBUS-FOR-B and NESTE OYJ 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 NESTE OYJ 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 NESTE OYJ UNSPADR, you can compare the effects of market volatilities on PTT OIL+RETBUS-FOR-B and NESTE OYJ 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 NESTE OYJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL+RETBUS-FOR-B and NESTE OYJ.
Diversification Opportunities for PTT OIL+RETBUS-FOR-B and NESTE OYJ
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PTT and NESTE is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding PTT OILRETBUS FOR BA10 and NESTE OYJ UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTE OYJ UNSPADR 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 NESTE OYJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTE OYJ UNSPADR has no effect on the direction of PTT OIL+RETBUS-FOR-B i.e., PTT OIL+RETBUS-FOR-B and NESTE OYJ go up and down completely randomly.
Pair Corralation between PTT OIL+RETBUS-FOR-B and NESTE OYJ
Assuming the 90 days horizon PTT OILRETBUS FOR BA10 is expected to generate 0.78 times more return on investment than NESTE OYJ. However, PTT OILRETBUS FOR BA10 is 1.28 times less risky than NESTE OYJ. It trades about -0.28 of its potential returns per unit of risk. NESTE OYJ UNSPADR is currently generating about -0.24 per unit of risk. If you would invest 43.00 in PTT OILRETBUS FOR BA10 on September 23, 2024 and sell it today you would lose (10.00) from holding PTT OILRETBUS FOR BA10 or give up 23.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT OILRETBUS FOR BA10 vs. NESTE OYJ UNSPADR
Performance |
| Timeline |
| PTT OIL+RETBUS-FOR-B |
| NESTE OYJ UNSPADR |
PTT OIL+RETBUS-FOR-B and NESTE OYJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT OIL+RETBUS-FOR-B and NESTE OYJ
The main advantage of trading using opposite PTT OIL+RETBUS-FOR-B and NESTE OYJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL+RETBUS-FOR-B position performs unexpectedly, NESTE OYJ 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 NESTE OYJ will offset losses from the drop in NESTE OYJ's long position.| PTT OIL+RETBUS-FOR-B vs. Reliance Industries Limited | PTT OIL+RETBUS-FOR-B vs. Marathon Petroleum Corp | PTT OIL+RETBUS-FOR-B vs. Valero Energy | PTT OIL+RETBUS-FOR-B vs. Neste Oyj |
| NESTE OYJ vs. Reliance Industries Limited | NESTE OYJ vs. Marathon Petroleum Corp | NESTE OYJ vs. Valero Energy | NESTE OYJ vs. Neste Oyj |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |