Correlation Between PTT OIL and Silicon Craft
Can any of the company-specific risk be diversified away by investing in both PTT OIL and Silicon Craft 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 Silicon Craft 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 Silicon Craft Technology, you can compare the effects of market volatilities on PTT OIL and Silicon Craft 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 Silicon Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL and Silicon Craft.
Diversification Opportunities for PTT OIL and Silicon Craft
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Silicon is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PTT OIL RETAIL and Silicon Craft Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Craft Technology 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 Silicon Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Craft Technology has no effect on the direction of PTT OIL i.e., PTT OIL and Silicon Craft go up and down completely randomly.
Pair Corralation between PTT OIL and Silicon Craft
Assuming the 90 days trading horizon PTT OIL RETAIL is expected to generate 0.73 times more return on investment than Silicon Craft. However, PTT OIL RETAIL is 1.36 times less risky than Silicon Craft. It trades about -0.05 of its potential returns per unit of risk. Silicon Craft Technology is currently generating about -0.07 per unit of risk. If you would invest 2,134 in PTT OIL RETAIL on August 31, 2024 and sell it today you would lose (724.00) from holding PTT OIL RETAIL or give up 33.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT OIL RETAIL vs. Silicon Craft Technology
Performance |
| Timeline |
| PTT OIL RETAIL |
| Silicon Craft Technology |
PTT OIL and Silicon Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT OIL and Silicon Craft
The main advantage of trading using opposite PTT OIL and Silicon Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL position performs unexpectedly, Silicon Craft 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 Silicon Craft will offset losses from the drop in Silicon Craft's long position.| PTT OIL vs. Somboon Advance Technology | PTT OIL vs. 2S Metal Public | PTT OIL vs. Halcyon Technology Public | PTT OIL vs. Praram 9 Hospital |
| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand Public |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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