Correlation Between Sea Oil and PTT Oil
Can any of the company-specific risk be diversified away by investing in both Sea Oil 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 Sea Oil and PTT Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea Oil Public and PTT Oil and, you can compare the effects of market volatilities on Sea Oil 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 Sea Oil with a short position of PTT Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea Oil and PTT Oil.
Diversification Opportunities for Sea Oil and PTT Oil
Good diversification
The 3 months correlation between Sea and PTT is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sea Oil Public and PTT Oil and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Oil and Sea 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 Sea Oil Public 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 has no effect on the direction of Sea Oil i.e., Sea Oil and PTT Oil go up and down completely randomly.
Pair Corralation between Sea Oil and PTT Oil
Assuming the 90 days trading horizon Sea Oil Public is expected to generate 1.38 times more return on investment than PTT Oil. However, Sea Oil is 1.38 times more volatile than PTT Oil and. It trades about -0.03 of its potential returns per unit of risk. PTT Oil and is currently generating about -0.06 per unit of risk. If you would invest 355.00 in Sea Oil Public on September 4, 2024 and sell it today you would lose (101.00) from holding Sea Oil Public or give up 28.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sea Oil Public vs. PTT Oil and
Performance |
| Timeline |
| Sea Oil Public |
| PTT Oil |
Sea Oil and PTT Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea Oil and PTT Oil
The main advantage of trading using opposite Sea Oil and PTT Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea Oil 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.| Sea Oil vs. PTT Oil and | Sea Oil vs. Thai Oil Public | Sea Oil vs. IRPC Public | Sea Oil vs. Star Petroleum Refining |
| PTT Oil vs. Thai Oil Public | PTT Oil vs. IRPC Public | PTT Oil vs. Star Petroleum Refining | PTT Oil vs. Bangchak 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |