Correlation Between CP ALL and PTT Oil
Can any of the company-specific risk be diversified away by investing in both CP ALL 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 CP ALL and PTT Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CP ALL Public and PTT Oil and, you can compare the effects of market volatilities on CP ALL 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 CP ALL with a short position of PTT Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and PTT Oil.
Diversification Opportunities for CP ALL and PTT Oil
Very weak diversification
The 3 months correlation between CPALL and PTT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and PTT Oil and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Oil and CP ALL 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 CP ALL 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 has no effect on the direction of CP ALL i.e., CP ALL and PTT Oil go up and down completely randomly.
Pair Corralation between CP ALL and PTT Oil
Assuming the 90 days trading horizon CP ALL Public is expected to generate 0.91 times more return on investment than PTT Oil. However, CP ALL Public is 1.09 times less risky than PTT Oil. It trades about 0.01 of its potential returns per unit of risk. PTT Oil and is currently generating about -0.06 per unit of risk. If you would invest 6,216 in CP ALL Public on August 28, 2024 and sell it today you would earn a total of 109.00 from holding CP ALL Public or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
CP ALL Public vs. PTT Oil and
Performance |
| Timeline |
| CP ALL Public |
| PTT Oil |
CP ALL and PTT Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and PTT Oil
The main advantage of trading using opposite CP ALL and PTT Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL 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.| CP ALL vs. Airports of Thailand | CP ALL vs. PTT Public | CP ALL vs. Bangkok Dusit Medical | CP ALL vs. Kasikornbank Public |
| PTT Oil vs. Krung Thai Bank | PTT Oil vs. Thai Union Group | PTT Oil vs. PTT Public | PTT Oil vs. PTT Exploration and |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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