Correlation Between Ditto Public and PTT Oil
Can any of the company-specific risk be diversified away by investing in both Ditto Public 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 Ditto Public and PTT Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ditto Public and PTT Oil and, you can compare the effects of market volatilities on Ditto Public 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 Ditto Public with a short position of PTT Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ditto Public and PTT Oil.
Diversification Opportunities for Ditto Public and PTT Oil
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ditto and PTT is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ditto 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 Ditto Public 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 Ditto 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 Ditto Public i.e., Ditto Public and PTT Oil go up and down completely randomly.
Pair Corralation between Ditto Public and PTT Oil
Assuming the 90 days trading horizon Ditto Public is expected to under-perform the PTT Oil. In addition to that, Ditto Public is 1.67 times more volatile than PTT Oil and. It trades about -0.04 of its total potential returns per unit of risk. PTT Oil and is currently generating about -0.05 per unit of volatility. If you would invest 1,533 in PTT Oil and on August 29, 2024 and sell it today you would lose (103.00) from holding PTT Oil and or give up 6.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Ditto Public vs. PTT Oil and
Performance |
| Timeline |
| Ditto Public |
| PTT Oil |
Ditto Public and PTT Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ditto Public and PTT Oil
The main advantage of trading using opposite Ditto Public and PTT Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ditto Public 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.| Ditto Public vs. Dohome Public | Ditto Public vs. Forth Public | Ditto Public vs. Delta Electronics Public | Ditto Public vs. KCE Electronics Public |
| PTT Oil vs. PTT Public | PTT Oil vs. CP ALL Public | PTT Oil vs. Kasikornbank Public | PTT Oil vs. Airports of Thailand |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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