Correlation Between Micro Leasing and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Micro Leasing 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 Micro Leasing and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micro Leasing Public and PTT OIL RETAIL, you can compare the effects of market volatilities on Micro Leasing 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 Micro Leasing with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micro Leasing and PTT OIL.
Diversification Opportunities for Micro Leasing and PTT OIL
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Micro and PTT is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Micro Leasing 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 Micro Leasing 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 Micro Leasing 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 Micro Leasing i.e., Micro Leasing and PTT OIL go up and down completely randomly.
Pair Corralation between Micro Leasing and PTT OIL
Assuming the 90 days trading horizon Micro Leasing Public is expected to under-perform the PTT OIL. But the stock apears to be less risky and, when comparing its historical volatility, Micro Leasing Public is 2.06 times less risky than PTT OIL. The stock trades about -0.47 of its potential returns per unit of risk. The PTT OIL RETAIL is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 2,106 in PTT OIL RETAIL on August 30, 2024 and sell it today you would lose (686.00) from holding PTT OIL RETAIL or give up 32.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Micro Leasing Public vs. PTT OIL RETAIL
Performance |
| Timeline |
| Micro Leasing Public |
| PTT OIL RETAIL |
Micro Leasing and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micro Leasing and PTT OIL
The main advantage of trading using opposite Micro Leasing and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micro Leasing 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.| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Infraset Public | Micro Leasing vs. JMT Network Services |
| PTT OIL vs. Star Petroleum Refining | PTT OIL vs. Power Solution Technologies | PTT OIL vs. Kingsmen CMTI Public | PTT OIL vs. Project Planning Service |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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