Correlation Between IRPC Public and PTT OIL
Can any of the company-specific risk be diversified away by investing in both IRPC 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 IRPC 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 IRPC Public and PTT OIL RETAIL, you can compare the effects of market volatilities on IRPC 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 IRPC Public with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRPC Public and PTT OIL.
Diversification Opportunities for IRPC Public and PTT OIL
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IRPC and PTT is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding IRPC Public 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 IRPC 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 IRPC 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 RETAIL has no effect on the direction of IRPC Public i.e., IRPC Public and PTT OIL go up and down completely randomly.
Pair Corralation between IRPC Public and PTT OIL
Assuming the 90 days trading horizon IRPC Public is expected to generate 27.8 times more return on investment than PTT OIL. However, IRPC Public is 27.8 times more volatile than PTT OIL RETAIL. It trades about 0.04 of its potential returns per unit of risk. PTT OIL RETAIL is currently generating about -0.06 per unit of risk. If you would invest 293.00 in IRPC Public on September 4, 2024 and sell it today you would lose (156.00) from holding IRPC Public or give up 53.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
IRPC Public vs. PTT OIL RETAIL
Performance |
| Timeline |
| IRPC Public |
| PTT OIL RETAIL |
IRPC Public and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IRPC Public and PTT OIL
The main advantage of trading using opposite IRPC Public and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRPC 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.| IRPC Public vs. PTT Global Chemical | IRPC Public vs. PTT Public | IRPC Public vs. PTT Exploration and | IRPC Public vs. Thai Oil Public |
| PTT OIL vs. PTT Oil and | PTT OIL vs. Thai Oil Public | PTT OIL vs. IRPC Public | PTT OIL vs. Star Petroleum Refining |
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.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |