Correlation Between PTT OIL and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both PTT OIL and Rojana Industrial 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 Rojana Industrial 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 Rojana Industrial Park, you can compare the effects of market volatilities on PTT OIL and Rojana Industrial 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 Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL and Rojana Industrial.
Diversification Opportunities for PTT OIL and Rojana Industrial
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Rojana is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding PTT OIL RETAIL and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park 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 Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of PTT OIL i.e., PTT OIL and Rojana Industrial go up and down completely randomly.
Pair Corralation between PTT OIL and Rojana Industrial
Assuming the 90 days trading horizon PTT OIL RETAIL is expected to under-perform the Rojana Industrial. But the stock apears to be less risky and, when comparing its historical volatility, PTT OIL RETAIL is 1.32 times less risky than Rojana Industrial. The stock trades about -0.05 of its potential returns per unit of risk. The Rojana Industrial Park is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 577.00 in Rojana Industrial Park on September 13, 2024 and sell it today you would earn a total of 58.00 from holding Rojana Industrial Park or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT OIL RETAIL vs. Rojana Industrial Park
Performance |
| Timeline |
| PTT OIL RETAIL |
| Rojana Industrial Park |
PTT OIL and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT OIL and Rojana Industrial
The main advantage of trading using opposite PTT OIL and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL position performs unexpectedly, Rojana Industrial 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 Rojana Industrial will offset losses from the drop in Rojana Industrial's long position.| PTT OIL vs. PTT Oil and | PTT OIL vs. Thai Oil Public | PTT OIL vs. IRPC Public | PTT OIL vs. Star Petroleum Refining |
| Rojana Industrial vs. Lohakit Metal Public | Rojana Industrial vs. PTT OIL RETAIL | Rojana Industrial vs. Premier Marketing Public | Rojana Industrial vs. Sri panwa Hospitality |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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