Correlation Between Sena Development and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Sena Development 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 Sena Development and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sena Development Public and PTT OIL RETAIL, you can compare the effects of market volatilities on Sena Development 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 Sena Development with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sena Development and PTT OIL.
Diversification Opportunities for Sena Development and PTT OIL
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sena and PTT is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sena Development Public 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 Sena Development 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 Sena Development 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 RETAIL has no effect on the direction of Sena Development i.e., Sena Development and PTT OIL go up and down completely randomly.
Pair Corralation between Sena Development and PTT OIL
Assuming the 90 days trading horizon Sena Development Public is expected to generate 27.89 times more return on investment than PTT OIL. However, Sena Development is 27.89 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 355.00 in Sena Development Public on September 3, 2024 and sell it today you would lose (131.00) from holding Sena Development Public or give up 36.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sena Development Public vs. PTT OIL RETAIL
Performance |
| Timeline |
| Sena Development Public |
| PTT OIL RETAIL |
Sena Development and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sena Development and PTT OIL
The main advantage of trading using opposite Sena Development and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sena Development 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.| Sena Development vs. KTBST Mixed Leasehold | Sena Development vs. Bhiraj Office Leasehold | Sena Development vs. Warrix Sport PCL | Sena Development vs. Interlink Telecom Public |
| PTT OIL vs. PTT Oil and | PTT OIL vs. Thai Oil Public | PTT OIL vs. IRPC Public | PTT OIL vs. Star Petroleum Refining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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