Correlation Between OMV AG and PTT PCL
Can any of the company-specific risk be diversified away by investing in both OMV AG and PTT PCL 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 OMV AG and PTT PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OMV AG PK and PTT PCL ADR, you can compare the effects of market volatilities on OMV AG and PTT PCL 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 OMV AG with a short position of PTT PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV AG and PTT PCL.
Diversification Opportunities for OMV AG and PTT PCL
Average diversification
The 3 months correlation between OMV and PTT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding OMV AG PK and PTT PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT PCL ADR and OMV AG 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 OMV AG PK are associated (or correlated) with PTT PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT PCL ADR has no effect on the direction of OMV AG i.e., OMV AG and PTT PCL go up and down completely randomly.
Pair Corralation between OMV AG and PTT PCL
Assuming the 90 days horizon OMV AG is expected to generate 1.98 times less return on investment than PTT PCL. In addition to that, OMV AG is 2.17 times more volatile than PTT PCL ADR. It trades about 0.01 of its total potential returns per unit of risk. PTT PCL ADR is currently generating about 0.06 per unit of volatility. If you would invest 464.00 in PTT PCL ADR on November 9, 2024 and sell it today you would earn a total of 45.00 from holding PTT PCL ADR or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.52% |
| Values | Daily Returns |
OMV AG PK vs. PTT PCL ADR
Performance |
| Timeline |
| OMV AG PK |
| PTT PCL ADR |
OMV AG and PTT PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OMV AG and PTT PCL
The main advantage of trading using opposite OMV AG and PTT PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMV AG position performs unexpectedly, PTT PCL 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 PCL will offset losses from the drop in PTT PCL's long position.The idea behind OMV AG PK and PTT PCL ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |