Correlation Between ENEOS Holdings and PTT OIL+RETBUS-FOR-B
Can any of the company-specific risk be diversified away by investing in both ENEOS Holdings and PTT OIL+RETBUS-FOR-B 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 ENEOS Holdings and PTT OIL+RETBUS-FOR-B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENEOS Holdings and PTT OILRETBUS FOR BA10, you can compare the effects of market volatilities on ENEOS Holdings and PTT OIL+RETBUS-FOR-B 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 ENEOS Holdings with a short position of PTT OIL+RETBUS-FOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENEOS Holdings and PTT OIL+RETBUS-FOR-B.
Diversification Opportunities for ENEOS Holdings and PTT OIL+RETBUS-FOR-B
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ENEOS and PTT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ENEOS Holdings and PTT OILRETBUS FOR BA10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OIL+RETBUS-FOR-B and ENEOS Holdings 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 ENEOS Holdings are associated (or correlated) with PTT OIL+RETBUS-FOR-B. 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+RETBUS-FOR-B has no effect on the direction of ENEOS Holdings i.e., ENEOS Holdings and PTT OIL+RETBUS-FOR-B go up and down completely randomly.
Pair Corralation between ENEOS Holdings and PTT OIL+RETBUS-FOR-B
Assuming the 90 days horizon ENEOS Holdings is expected to generate 1.08 times more return on investment than PTT OIL+RETBUS-FOR-B. However, ENEOS Holdings is 1.08 times more volatile than PTT OILRETBUS FOR BA10. It trades about 0.06 of its potential returns per unit of risk. PTT OILRETBUS FOR BA10 is currently generating about -0.05 per unit of risk. If you would invest 412.00 in ENEOS Holdings on September 3, 2024 and sell it today you would earn a total of 86.00 from holding ENEOS Holdings or generate 20.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENEOS Holdings vs. PTT OILRETBUS FOR BA10
Performance |
| Timeline |
| ENEOS Holdings |
| PTT OIL+RETBUS-FOR-B |
ENEOS Holdings and PTT OIL+RETBUS-FOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENEOS Holdings and PTT OIL+RETBUS-FOR-B
The main advantage of trading using opposite ENEOS Holdings and PTT OIL+RETBUS-FOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENEOS Holdings position performs unexpectedly, PTT OIL+RETBUS-FOR-B 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+RETBUS-FOR-B will offset losses from the drop in PTT OIL+RETBUS-FOR-B's long position.| ENEOS Holdings vs. Micron Technology | ENEOS Holdings vs. Fukuyama Transporting Co | ENEOS Holdings vs. MACOM Technology Solutions | ENEOS Holdings vs. SCOTT TECHNOLOGY |
| PTT OIL+RETBUS-FOR-B vs. Marathon Petroleum Corp | PTT OIL+RETBUS-FOR-B vs. Neste Oyj | PTT OIL+RETBUS-FOR-B vs. ENEOS Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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