Correlation Between PTT OIL+RETBUS-FOR-B and Clean Energy
Can any of the company-specific risk be diversified away by investing in both PTT OIL+RETBUS-FOR-B and Clean Energy 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 Clean Energy 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 Clean Energy Fuels, you can compare the effects of market volatilities on PTT OIL+RETBUS-FOR-B and Clean Energy 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 Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL+RETBUS-FOR-B and Clean Energy.
Diversification Opportunities for PTT OIL+RETBUS-FOR-B and Clean Energy
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between PTT and Clean is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PTT OILRETBUS FOR BA10 and Clean Energy Fuels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Energy Fuels 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 Clean Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Energy Fuels has no effect on the direction of PTT OIL+RETBUS-FOR-B i.e., PTT OIL+RETBUS-FOR-B and Clean Energy go up and down completely randomly.
Pair Corralation between PTT OIL+RETBUS-FOR-B and Clean Energy
Assuming the 90 days horizon PTT OIL+RETBUS-FOR-B is expected to generate 40.98 times less return on investment than Clean Energy. But when comparing it to its historical volatility, PTT OILRETBUS FOR BA10 is 1.21 times less risky than Clean Energy. It trades about 0.0 of its potential returns per unit of risk. Clean Energy Fuels is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 256.00 in Clean Energy Fuels on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Clean Energy Fuels or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT OILRETBUS FOR BA10 vs. Clean Energy Fuels
Performance |
| Timeline |
| PTT OIL+RETBUS-FOR-B |
| Clean Energy Fuels |
PTT OIL+RETBUS-FOR-B and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT OIL+RETBUS-FOR-B and Clean Energy
The main advantage of trading using opposite PTT OIL+RETBUS-FOR-B and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL+RETBUS-FOR-B position performs unexpectedly, Clean Energy 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 Clean Energy will offset losses from the drop in Clean Energy's long position.| PTT OIL+RETBUS-FOR-B vs. Marathon Petroleum Corp | PTT OIL+RETBUS-FOR-B vs. Neste Oyj | PTT OIL+RETBUS-FOR-B vs. ENEOS Holdings |
| Clean Energy vs. Marathon Petroleum Corp | Clean Energy vs. Neste Oyj | Clean Energy vs. ENEOS Holdings | Clean Energy vs. PTT OILRETBUS FOR BA10 |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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