Correlation Between PTT Oil and PTT Public
Can any of the company-specific risk be diversified away by investing in both PTT Oil and PTT Public 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 PTT Public 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 PTT Public, you can compare the effects of market volatilities on PTT Oil and PTT Public 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 PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Oil and PTT Public.
Diversification Opportunities for PTT Oil and PTT Public
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and PTT is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PTT Oil and and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public 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 PTT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Public has no effect on the direction of PTT Oil i.e., PTT Oil and PTT Public go up and down completely randomly.
Pair Corralation between PTT Oil and PTT Public
Assuming the 90 days horizon PTT Oil and is expected to under-perform the PTT Public. In addition to that, PTT Oil is 1.44 times more volatile than PTT Public. It trades about -0.15 of its total potential returns per unit of risk. PTT Public is currently generating about -0.06 per unit of volatility. If you would invest 3,350 in PTT Public on August 24, 2024 and sell it today you would lose (50.00) from holding PTT Public or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Oil and vs. PTT Public
Performance |
| Timeline |
| PTT Oil |
| PTT Public |
PTT Oil and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Oil and PTT Public
The main advantage of trading using opposite PTT Oil and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Oil position performs unexpectedly, PTT Public 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 PTT Public will offset losses from the drop in PTT Public'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 |
| PTT Public vs. IRPC Public | PTT Public vs. PTT Oil and | PTT Public vs. Power Solution Technologies | PTT Public vs. Star Petroleum Refining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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