Correlation Between PTT OIL and Platinum
Can any of the company-specific risk be diversified away by investing in both PTT OIL and Platinum 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 PTT OIL and Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT OIL RETAIL and The Platinum Group, you can compare the effects of market volatilities on PTT OIL and Platinum 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 PTT OIL with a short position of Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL and Platinum.
Diversification Opportunities for PTT OIL and Platinum
Good diversification
The 3 months correlation between PTT and Platinum is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PTT OIL RETAIL and The Platinum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group and PTT OIL 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 PTT OIL RETAIL are associated (or correlated) with Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group has no effect on the direction of PTT OIL i.e., PTT OIL and Platinum go up and down completely randomly.
Pair Corralation between PTT OIL and Platinum
Assuming the 90 days trading horizon PTT OIL RETAIL is expected to under-perform the Platinum. In addition to that, PTT OIL is 2.5 times more volatile than The Platinum Group. It trades about -0.23 of its total potential returns per unit of risk. The Platinum Group is currently generating about 0.09 per unit of volatility. If you would invest 222.00 in The Platinum Group on September 2, 2024 and sell it today you would earn a total of 10.00 from holding The Platinum Group or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT OIL RETAIL vs. The Platinum Group
Performance |
| Timeline |
| PTT OIL RETAIL |
| Platinum Group |
PTT OIL and Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT OIL and Platinum
The main advantage of trading using opposite PTT OIL and Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL position performs unexpectedly, Platinum 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 Platinum will offset losses from the drop in Platinum's long position.| PTT OIL vs. Star Petroleum Refining | PTT OIL vs. Power Solution Technologies | PTT OIL vs. Kingsmen CMTI Public | PTT OIL vs. Project Planning Service |
| Platinum vs. DOHOME | Platinum vs. Bualuang Office Leasehold | Platinum vs. Silicon Craft Technology | Platinum vs. KT Medical 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 CEOs Directory module to screen CEOs from public companies around the world.
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