Correlation Between PTT OIL and Thai Coating
Can any of the company-specific risk be diversified away by investing in both PTT OIL and Thai Coating 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 Thai Coating 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 Thai Coating Industrial, you can compare the effects of market volatilities on PTT OIL and Thai Coating 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 Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL and Thai Coating.
Diversification Opportunities for PTT OIL and Thai Coating
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Thai is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PTT OIL RETAIL and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating Industrial 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 Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of PTT OIL i.e., PTT OIL and Thai Coating go up and down completely randomly.
Pair Corralation between PTT OIL and Thai Coating
Assuming the 90 days trading horizon PTT OIL RETAIL is expected to under-perform the Thai Coating. But the stock apears to be less risky and, when comparing its historical volatility, PTT OIL RETAIL is 1.08 times less risky than Thai Coating. The stock trades about -0.22 of its potential returns per unit of risk. The Thai Coating Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Thai Coating Industrial on August 28, 2024 and sell it today you would lose (100.00) from holding Thai Coating Industrial or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT OIL RETAIL vs. Thai Coating Industrial
Performance |
| Timeline |
| PTT OIL RETAIL |
| Thai Coating Industrial |
PTT OIL and Thai Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT OIL and Thai Coating
The main advantage of trading using opposite PTT OIL and Thai Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL position performs unexpectedly, Thai Coating 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 Thai Coating will offset losses from the drop in Thai Coating's long position.| PTT OIL vs. 3BB INTERNET INFRASTRUCTURE | PTT OIL vs. Sriracha Construction Public | PTT OIL vs. CHAOSUA FOODS INDUSTRY | PTT OIL vs. Asia Medical Agricultural |
| Thai Coating vs. PTT Public | Thai Coating vs. PTT Exploration and | Thai Coating vs. CP ALL Public | Thai Coating vs. Kasikornbank 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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