Correlation Between AddTech Hub and PTT OIL
Can any of the company-specific risk be diversified away by investing in both AddTech Hub and PTT 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 AddTech Hub and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AddTech Hub Public and PTT OIL RETAIL, you can compare the effects of market volatilities on AddTech Hub and PTT 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 AddTech Hub with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AddTech Hub and PTT OIL.
Diversification Opportunities for AddTech Hub and PTT OIL
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AddTech and PTT is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AddTech Hub Public and PTT OIL RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OIL RETAIL and AddTech Hub 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 AddTech Hub Public are associated (or correlated) with PTT OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OIL RETAIL has no effect on the direction of AddTech Hub i.e., AddTech Hub and PTT OIL go up and down completely randomly.
Pair Corralation between AddTech Hub and PTT OIL
Assuming the 90 days trading horizon AddTech Hub Public is expected to under-perform the PTT OIL. But the stock apears to be less risky and, when comparing its historical volatility, AddTech Hub Public is 3.36 times less risky than PTT OIL. The stock trades about -0.23 of its potential returns per unit of risk. The PTT OIL RETAIL is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,149 in PTT OIL RETAIL on November 28, 2024 and sell it today you would lose (9.00) from holding PTT OIL RETAIL or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
AddTech Hub Public vs. PTT OIL RETAIL
Performance |
| Timeline |
| AddTech Hub Public |
| PTT OIL RETAIL |
AddTech Hub and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AddTech Hub and PTT OIL
The main advantage of trading using opposite AddTech Hub and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AddTech Hub position performs unexpectedly, PTT 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 PTT OIL will offset losses from the drop in PTT OIL's long position.| AddTech Hub vs. Forth Public | AddTech Hub vs. Ditto Public | AddTech Hub vs. II Group Public | AddTech Hub vs. After You Public |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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