Correlation Between Central Retail and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Central Retail 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 Central Retail and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Retail and PTT OIL RETAIL, you can compare the effects of market volatilities on Central Retail 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 Central Retail with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Retail and PTT OIL.
Diversification Opportunities for Central Retail and PTT OIL
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Central and PTT is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Central Retail 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 Central Retail 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 Central Retail 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 Central Retail i.e., Central Retail and PTT OIL go up and down completely randomly.
Pair Corralation between Central Retail and PTT OIL
Assuming the 90 days trading horizon Central Retail is expected to generate 0.55 times more return on investment than PTT OIL. However, Central Retail is 1.81 times less risky than PTT OIL. It trades about 0.13 of its potential returns per unit of risk. PTT OIL RETAIL is currently generating about -0.15 per unit of risk. If you would invest 2,900 in Central Retail on August 31, 2024 and sell it today you would earn a total of 525.00 from holding Central Retail or generate 18.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Retail vs. PTT OIL RETAIL
Performance |
| Timeline |
| Central Retail |
| PTT OIL RETAIL |
Central Retail and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Retail and PTT OIL
The main advantage of trading using opposite Central Retail and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Retail 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.| Central Retail vs. Saksiam Leasing Public | Central Retail vs. Interlink Telecom Public | Central Retail vs. Asia Sermkij Leasing | Central Retail vs. Hydrogen Freehold Leasehold |
| PTT OIL vs. Somboon Advance Technology | PTT OIL vs. 2S Metal Public | PTT OIL vs. Halcyon Technology Public | PTT OIL vs. Praram 9 Hospital |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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