Correlation Between Erawan and PTT Oil
Can any of the company-specific risk be diversified away by investing in both Erawan 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 Erawan and PTT Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Erawan Group and PTT Oil and, you can compare the effects of market volatilities on Erawan 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 Erawan with a short position of PTT Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and PTT Oil.
Diversification Opportunities for Erawan and PTT Oil
Weak diversification
The 3 months correlation between Erawan and PTT is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and PTT Oil and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Oil and Erawan 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 The Erawan Group 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 Erawan i.e., Erawan and PTT Oil go up and down completely randomly.
Pair Corralation between Erawan and PTT Oil
Assuming the 90 days trading horizon The Erawan Group is expected to generate 71.04 times more return on investment than PTT Oil. However, Erawan is 71.04 times more volatile than PTT Oil and. It trades about 0.11 of its potential returns per unit of risk. PTT Oil and is currently generating about -0.05 per unit of risk. If you would invest 378.00 in The Erawan Group on August 29, 2024 and sell it today you would earn a total of 26.00 from holding The Erawan Group or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Erawan Group vs. PTT Oil and
Performance |
| Timeline |
| Erawan Group |
| PTT Oil |
Erawan and PTT Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and PTT Oil
The main advantage of trading using opposite Erawan and PTT Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan 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.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Directory Find actively traded commodities issued by global exchanges |