Correlation Between BTS Group and PTT Oil
Can any of the company-specific risk be diversified away by investing in both BTS Group 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 BTS Group and PTT Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTS Group Holdings and PTT Oil and, you can compare the effects of market volatilities on BTS Group 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 BTS Group with a short position of PTT Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and PTT Oil.
Diversification Opportunities for BTS Group and PTT Oil
Very good diversification
The 3 months correlation between BTS and PTT is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and PTT Oil and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Oil and BTS Group 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 BTS Group Holdings 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 has no effect on the direction of BTS Group i.e., BTS Group and PTT Oil go up and down completely randomly.
Pair Corralation between BTS Group and PTT Oil
Assuming the 90 days trading horizon BTS Group Holdings is expected to generate 0.96 times more return on investment than PTT Oil. However, BTS Group Holdings is 1.04 times less risky than PTT Oil. It trades about 0.29 of its potential returns per unit of risk. PTT Oil and is currently generating about -0.33 per unit of risk. If you would invest 490.00 in BTS Group Holdings on August 30, 2024 and sell it today you would earn a total of 60.00 from holding BTS Group Holdings or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. PTT Oil and
Performance |
| Timeline |
| BTS Group Holdings |
| PTT Oil |
BTS Group and PTT Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and PTT Oil
The main advantage of trading using opposite BTS Group and PTT Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group 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.| BTS Group vs. MCS Steel Public | BTS Group vs. Asia Plus Group | BTS Group vs. Lalin Property Public | BTS Group vs. Lam Soon Public |
| PTT Oil vs. Star Petroleum Refining | PTT Oil vs. Power Solution Technologies | PTT Oil vs. Kingsmen CMTI Public | PTT Oil vs. Project Planning Service |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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