Correlation Between Phillips and PTT OILRETBUS
Can any of the company-specific risk be diversified away by investing in both Phillips and PTT OILRETBUS 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 Phillips and PTT OILRETBUS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phillips 66 and PTT OILRETBUS FOR BA10, you can compare the effects of market volatilities on Phillips and PTT OILRETBUS 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 Phillips with a short position of PTT OILRETBUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phillips and PTT OILRETBUS.
Diversification Opportunities for Phillips and PTT OILRETBUS
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Phillips and PTT is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Phillips 66 and PTT OILRETBUS FOR BA10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OILRETBUS FOR and Phillips 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 Phillips 66 are associated (or correlated) with PTT OILRETBUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OILRETBUS FOR has no effect on the direction of Phillips i.e., Phillips and PTT OILRETBUS go up and down completely randomly.
Pair Corralation between Phillips and PTT OILRETBUS
Assuming the 90 days horizon Phillips 66 is expected to generate 0.69 times more return on investment than PTT OILRETBUS. However, Phillips 66 is 1.45 times less risky than PTT OILRETBUS. It trades about -0.29 of its potential returns per unit of risk. PTT OILRETBUS FOR BA10 is currently generating about -0.28 per unit of risk. If you would invest 12,308 in Phillips 66 on October 10, 2024 and sell it today you would lose (1,196) from holding Phillips 66 or give up 9.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phillips 66 vs. PTT OILRETBUS FOR BA10
Performance |
| Timeline |
| Phillips 66 |
| PTT OILRETBUS FOR |
Phillips and PTT OILRETBUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phillips and PTT OILRETBUS
The main advantage of trading using opposite Phillips and PTT OILRETBUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phillips position performs unexpectedly, PTT OILRETBUS 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 OILRETBUS will offset losses from the drop in PTT OILRETBUS's long position.| Phillips vs. AAC TECHNOLOGHLDGADR | Phillips vs. ACCSYS TECHPLC EO | Phillips vs. ANGLO ASIAN MINING | Phillips vs. Perseus Mining Limited |
| PTT OILRETBUS vs. PTT OILRETBUS NVDR 10 | PTT OILRETBUS vs. Kunlun Energy | PTT OILRETBUS vs. IRPC PCL NVDR | PTT OILRETBUS vs. Idemitsu Kosan CoLtd |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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