Correlation Between Project Planning and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Project Planning 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 Project Planning and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Project Planning Service and PTT OIL RETAIL, you can compare the effects of market volatilities on Project Planning 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 Project Planning with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Project Planning and PTT OIL.
Diversification Opportunities for Project Planning and PTT OIL
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Project and PTT is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Project Planning Service 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 Project Planning 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 Project Planning Service 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 Project Planning i.e., Project Planning and PTT OIL go up and down completely randomly.
Pair Corralation between Project Planning and PTT OIL
Assuming the 90 days trading horizon Project Planning Service is expected to generate 24.7 times more return on investment than PTT OIL. However, Project Planning is 24.7 times more volatile than PTT OIL RETAIL. It trades about 0.04 of its potential returns per unit of risk. PTT OIL RETAIL is currently generating about -0.05 per unit of risk. If you would invest 70.00 in Project Planning Service on November 28, 2024 and sell it today you would lose (52.00) from holding Project Planning Service or give up 74.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Project Planning Service vs. PTT OIL RETAIL
Performance |
| Timeline |
| Project Planning Service |
| PTT OIL RETAIL |
Project Planning and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Project Planning and PTT OIL
The main advantage of trading using opposite Project Planning and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Project Planning 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.| Project Planning vs. Power Solution Technologies | Project Planning vs. Kingsmen CMTI Public | Project Planning vs. Panjawattana Plastic Public | Project Planning vs. Cho Thavee Public |
| PTT OIL vs. Techno Medical Public | PTT OIL vs. Advanced Information Technology | PTT OIL vs. Workpoint Entertainment Public | PTT OIL vs. Central Plaza Hotel |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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