Correlation Between PTT Oil and ONE Enterprise
Can any of the company-specific risk be diversified away by investing in both PTT Oil and ONE Enterprise 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 ONE Enterprise 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 The ONE Enterprise, you can compare the effects of market volatilities on PTT Oil and ONE Enterprise 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 ONE Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Oil and ONE Enterprise.
Diversification Opportunities for PTT Oil and ONE Enterprise
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PTT and ONE is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding PTT Oil and and The ONE Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONE Enterprise 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 ONE Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONE Enterprise has no effect on the direction of PTT Oil i.e., PTT Oil and ONE Enterprise go up and down completely randomly.
Pair Corralation between PTT Oil and ONE Enterprise
Assuming the 90 days horizon PTT Oil and is expected to under-perform the ONE Enterprise. In addition to that, PTT Oil is 1.28 times more volatile than The ONE Enterprise. It trades about -0.27 of its total potential returns per unit of risk. The ONE Enterprise is currently generating about -0.15 per unit of volatility. If you would invest 394.00 in The ONE Enterprise on August 29, 2024 and sell it today you would lose (18.00) from holding The ONE Enterprise or give up 4.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Oil and vs. The ONE Enterprise
Performance |
| Timeline |
| PTT Oil |
| ONE Enterprise |
PTT Oil and ONE Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Oil and ONE Enterprise
The main advantage of trading using opposite PTT Oil and ONE Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Oil position performs unexpectedly, ONE Enterprise 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 ONE Enterprise will offset losses from the drop in ONE Enterprise's long position.| PTT Oil vs. Krung Thai Bank | PTT Oil vs. Thai Union Group | PTT Oil vs. PTT Public | PTT Oil vs. PTT Exploration and |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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