Correlation Between PINTHONG INDUSTRIAL and PTT OIL
Can any of the company-specific risk be diversified away by investing in both PINTHONG INDUSTRIAL and PTT OIL 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 PINTHONG INDUSTRIAL and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PINTHONG INDUSTRIAL PARK and PTT OIL RETAIL, you can compare the effects of market volatilities on PINTHONG INDUSTRIAL and PTT OIL 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 PINTHONG INDUSTRIAL with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PINTHONG INDUSTRIAL and PTT OIL.
Diversification Opportunities for PINTHONG INDUSTRIAL and PTT OIL
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PINTHONG and PTT is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding PINTHONG INDUSTRIAL PARK and PTT OIL RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OIL RETAIL and PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL PARK are associated (or correlated) with PTT OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OIL RETAIL has no effect on the direction of PINTHONG INDUSTRIAL i.e., PINTHONG INDUSTRIAL and PTT OIL go up and down completely randomly.
Pair Corralation between PINTHONG INDUSTRIAL and PTT OIL
Assuming the 90 days trading horizon PINTHONG INDUSTRIAL PARK is expected to generate 0.92 times more return on investment than PTT OIL. However, PINTHONG INDUSTRIAL PARK is 1.08 times less risky than PTT OIL. It trades about 0.13 of its potential returns per unit of risk. PTT OIL RETAIL is currently generating about -0.15 per unit of risk. If you would invest 474.00 in PINTHONG INDUSTRIAL PARK on August 31, 2024 and sell it today you would earn a total of 136.00 from holding PINTHONG INDUSTRIAL PARK or generate 28.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PINTHONG INDUSTRIAL PARK vs. PTT OIL RETAIL
Performance |
| Timeline |
| PINTHONG INDUSTRIAL PARK |
| PTT OIL RETAIL |
PINTHONG INDUSTRIAL and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PINTHONG INDUSTRIAL and PTT OIL
The main advantage of trading using opposite PINTHONG INDUSTRIAL and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PINTHONG INDUSTRIAL position performs unexpectedly, PTT OIL 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 OIL will offset losses from the drop in PTT OIL's long position.| PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset Public |
| PTT OIL vs. Somboon Advance Technology | PTT OIL vs. 2S Metal Public | PTT OIL vs. Halcyon Technology Public | PTT OIL vs. Praram 9 Hospital |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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