Correlation Between PTT Public and Sea Oil
Can any of the company-specific risk be diversified away by investing in both PTT Public and Sea 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 PTT Public and Sea Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Sea Oil Public, you can compare the effects of market volatilities on PTT Public and Sea 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 PTT Public with a short position of Sea Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Sea Oil.
Diversification Opportunities for PTT Public and Sea Oil
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Sea is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Sea Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea Oil Public and PTT Public 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 Public are associated (or correlated) with Sea Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea Oil Public has no effect on the direction of PTT Public i.e., PTT Public and Sea Oil go up and down completely randomly.
Pair Corralation between PTT Public and Sea Oil
Assuming the 90 days trading horizon PTT Public is expected to under-perform the Sea Oil. But the stock apears to be less risky and, when comparing its historical volatility, PTT Public is 1.36 times less risky than Sea Oil. The stock trades about -0.16 of its potential returns per unit of risk. The Sea Oil Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 260.00 in Sea Oil Public on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Sea Oil Public or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Sea Oil Public
Performance |
| Timeline |
| PTT Public |
| Sea Oil Public |
PTT Public and Sea Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Sea Oil
The main advantage of trading using opposite PTT Public and Sea Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Sea 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 Sea Oil will offset losses from the drop in Sea Oil's long position.| PTT Public vs. PTT Exploration and | PTT Public vs. The Siam Cement | PTT Public vs. CP ALL Public | PTT Public vs. Airports of Thailand |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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