Correlation Between Kingsmen CMTI and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI 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 Kingsmen CMTI and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsmen CMTI Public and PTT OIL RETAIL, you can compare the effects of market volatilities on Kingsmen CMTI 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 Kingsmen CMTI with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and PTT OIL.
Diversification Opportunities for Kingsmen CMTI and PTT OIL
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsmen and PTT is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI 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 Kingsmen CMTI 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 Kingsmen CMTI 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 Kingsmen CMTI i.e., Kingsmen CMTI and PTT OIL go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and PTT OIL
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to generate 24.97 times more return on investment than PTT OIL. However, Kingsmen CMTI is 24.97 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 127.00 in Kingsmen CMTI Public on November 28, 2024 and sell it today you would lose (5.00) from holding Kingsmen CMTI Public or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. PTT OIL RETAIL
Performance |
| Timeline |
| Kingsmen CMTI Public |
| PTT OIL RETAIL |
Kingsmen CMTI and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and PTT OIL
The main advantage of trading using opposite Kingsmen CMTI and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI 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.| Kingsmen CMTI vs. Ratch Group Public | Kingsmen CMTI vs. Siamese Asset Public | Kingsmen CMTI vs. Richy Place 2002 | Kingsmen CMTI vs. Sammakorn Public |
| PTT OIL vs. Techno Medical Public | PTT OIL vs. Advanced Information Technology | PTT OIL vs. Workpoint Entertainment Public | PTT OIL vs. Central Plaza Hotel |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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