Correlation Between PTT Oil and Asian Sea
Can any of the company-specific risk be diversified away by investing in both PTT Oil and Asian Sea 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 Asian Sea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Oil and and Asian Sea, you can compare the effects of market volatilities on PTT Oil and Asian Sea 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 Asian Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Oil and Asian Sea.
Diversification Opportunities for PTT Oil and Asian Sea
Weak diversification
The 3 months correlation between PTT and Asian is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding PTT Oil and and Asian Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Sea 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 and are associated (or correlated) with Asian Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Sea has no effect on the direction of PTT Oil i.e., PTT Oil and Asian Sea go up and down completely randomly.
Pair Corralation between PTT Oil and Asian Sea
Assuming the 90 days horizon PTT Oil and is expected to under-perform the Asian Sea. But the stock apears to be less risky and, when comparing its historical volatility, PTT Oil and is 1.79 times less risky than Asian Sea. The stock trades about -0.08 of its potential returns per unit of risk. The Asian Sea is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Asian Sea on August 29, 2024 and sell it today you would earn a total of 251.00 from holding Asian Sea or generate 40.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Oil and vs. Asian Sea
Performance |
| Timeline |
| PTT Oil |
| Asian Sea |
PTT Oil and Asian Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Oil and Asian Sea
The main advantage of trading using opposite PTT Oil and Asian Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Oil position performs unexpectedly, Asian Sea 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 Asian Sea will offset losses from the drop in Asian Sea's long position.| PTT Oil vs. PTT Public | PTT Oil vs. CP ALL Public | PTT Oil vs. Kasikornbank Public | PTT Oil vs. Airports of Thailand |
| Asian Sea vs. GFPT Public | Asian Sea vs. Carabao Group Public | Asian Sea vs. Thai Union Group | Asian Sea vs. Agripure Holdings 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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