Correlation Between Bualuang Office and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Bualuang Office 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 Bualuang Office and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bualuang Office Leasehold and PTT OIL RETAIL, you can compare the effects of market volatilities on Bualuang Office 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 Bualuang Office with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bualuang Office and PTT OIL.
Diversification Opportunities for Bualuang Office and PTT OIL
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bualuang and PTT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bualuang Office Leasehold 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 Bualuang Office 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 Bualuang Office Leasehold 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 Bualuang Office i.e., Bualuang Office and PTT OIL go up and down completely randomly.
Pair Corralation between Bualuang Office and PTT OIL
Assuming the 90 days trading horizon Bualuang Office Leasehold is expected to under-perform the PTT OIL. In addition to that, Bualuang Office is 6.74 times more volatile than PTT OIL RETAIL. It trades about -0.23 of its total potential returns per unit of risk. PTT OIL RETAIL is currently generating about 0.0 per unit of volatility. 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 | 100.0% |
| Values | Daily Returns |
Bualuang Office Leasehold vs. PTT OIL RETAIL
Performance |
| Timeline |
| Bualuang Office Leasehold |
| PTT OIL RETAIL |
Bualuang Office and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bualuang Office and PTT OIL
The main advantage of trading using opposite Bualuang Office and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bualuang Office 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.| Bualuang Office vs. Digital Telecommunications Infrastructure | Bualuang Office vs. Prime Office Leasehold | Bualuang Office vs. CPN Retail Growth | Bualuang Office vs. Dynasty Ceramic Public |
| PTT OIL vs. Techno Medical Public | PTT OIL vs. Advanced Information Technology | PTT OIL vs. Workpoint Entertainment Public | PTT OIL vs. Central Plaza Hotel |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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