Correlation Between PTT Oil and PTT Exploration
Can any of the company-specific risk be diversified away by investing in both PTT Oil and PTT Exploration 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 Exploration 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 Exploration and, you can compare the effects of market volatilities on PTT Oil and PTT Exploration 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 Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Oil and PTT Exploration.
Diversification Opportunities for PTT Oil and PTT Exploration
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and PTT is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding PTT Oil and and PTT Exploration and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Exploration 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 Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Exploration has no effect on the direction of PTT Oil i.e., PTT Oil and PTT Exploration go up and down completely randomly.
Pair Corralation between PTT Oil and PTT Exploration
Assuming the 90 days horizon PTT Oil and is expected to under-perform the PTT Exploration. In addition to that, PTT Oil is 1.03 times more volatile than PTT Exploration and. It trades about -0.27 of its total potential returns per unit of risk. PTT Exploration and is currently generating about 0.07 per unit of volatility. If you would invest 12,500 in PTT Exploration and on August 29, 2024 and sell it today you would earn a total of 300.00 from holding PTT Exploration and or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Oil and vs. PTT Exploration and
Performance |
| Timeline |
| PTT Oil |
| PTT Exploration |
PTT Oil and PTT Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Oil and PTT Exploration
The main advantage of trading using opposite PTT Oil and PTT Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Oil position performs unexpectedly, PTT Exploration 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 Exploration will offset losses from the drop in PTT Exploration'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 |
| PTT Exploration vs. PTT Public | PTT Exploration vs. PTT Global Chemical | PTT Exploration vs. The Siam Cement | PTT Exploration vs. SCB X 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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