Correlation Between PTT Oil and Pylon Public
Can any of the company-specific risk be diversified away by investing in both PTT Oil and Pylon 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 Pylon 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 Pylon Public, you can compare the effects of market volatilities on PTT Oil and Pylon 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 Pylon Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Oil and Pylon Public.
Diversification Opportunities for PTT Oil and Pylon Public
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Pylon is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PTT Oil and and Pylon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pylon 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 Pylon Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pylon Public has no effect on the direction of PTT Oil i.e., PTT Oil and Pylon Public go up and down completely randomly.
Pair Corralation between PTT Oil and Pylon Public
Assuming the 90 days horizon PTT Oil and is expected to under-perform the Pylon Public. But the stock apears to be less risky and, when comparing its historical volatility, PTT Oil and is 50.31 times less risky than Pylon Public. The stock trades about -0.06 of its potential returns per unit of risk. The Pylon Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 238.00 in Pylon Public on August 25, 2024 and sell it today you would lose (48.00) from holding Pylon Public or give up 20.17% 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. Pylon Public
Performance |
| Timeline |
| PTT Oil |
| Pylon Public |
PTT Oil and Pylon Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Oil and Pylon Public
The main advantage of trading using opposite PTT Oil and Pylon Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Oil position performs unexpectedly, Pylon 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 Pylon Public will offset losses from the drop in Pylon 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 |
| Pylon Public vs. Seafco Public | Pylon Public vs. PTG Energy PCL | Pylon Public vs. CH Karnchang Public | Pylon Public vs. Ratchthani Leasing 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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |