Correlation Between PTT OIL+RETBUS-FOR-B and Phillips
Can any of the company-specific risk be diversified away by investing in both PTT OIL+RETBUS-FOR-B and Phillips 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 Phillips 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 Phillips 66, you can compare the effects of market volatilities on PTT OIL+RETBUS-FOR-B and Phillips 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 Phillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL+RETBUS-FOR-B and Phillips.
Diversification Opportunities for PTT OIL+RETBUS-FOR-B and Phillips
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Phillips is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding PTT OILRETBUS FOR BA10 and Phillips 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips 66 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 Phillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips 66 has no effect on the direction of PTT OIL+RETBUS-FOR-B i.e., PTT OIL+RETBUS-FOR-B and Phillips go up and down completely randomly.
Pair Corralation between PTT OIL+RETBUS-FOR-B and Phillips
Assuming the 90 days horizon PTT OILRETBUS FOR BA10 is expected to under-perform the Phillips. In addition to that, PTT OIL+RETBUS-FOR-B is 1.01 times more volatile than Phillips 66. It trades about -0.28 of its total potential returns per unit of risk. Phillips 66 is currently generating about -0.12 per unit of volatility. If you would invest 11,845 in Phillips 66 on September 23, 2024 and sell it today you would lose (1,305) from holding Phillips 66 or give up 11.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT OILRETBUS FOR BA10 vs. Phillips 66
Performance |
| Timeline |
| PTT OIL+RETBUS-FOR-B |
| Phillips 66 |
PTT OIL+RETBUS-FOR-B and Phillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT OIL+RETBUS-FOR-B and Phillips
The main advantage of trading using opposite PTT OIL+RETBUS-FOR-B and Phillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL+RETBUS-FOR-B position performs unexpectedly, Phillips 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 Phillips will offset losses from the drop in Phillips' 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 |
| Phillips vs. Reliance Industries Limited | Phillips vs. Marathon Petroleum Corp | Phillips vs. Valero Energy | Phillips 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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