Correlation Between Srinanaporn Marketing and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Srinanaporn Marketing 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 Srinanaporn Marketing and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srinanaporn Marketing Public and PTT OIL RETAIL, you can compare the effects of market volatilities on Srinanaporn Marketing 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 Srinanaporn Marketing with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srinanaporn Marketing and PTT OIL.
Diversification Opportunities for Srinanaporn Marketing and PTT OIL
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Srinanaporn and PTT is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Srinanaporn Marketing 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 Srinanaporn Marketing 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 Srinanaporn Marketing 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 Srinanaporn Marketing i.e., Srinanaporn Marketing and PTT OIL go up and down completely randomly.
Pair Corralation between Srinanaporn Marketing and PTT OIL
Assuming the 90 days trading horizon Srinanaporn Marketing Public is expected to generate 0.3 times more return on investment than PTT OIL. However, Srinanaporn Marketing Public is 3.29 times less risky than PTT OIL. It trades about -0.2 of its potential returns per unit of risk. PTT OIL RETAIL is currently generating about -0.21 per unit of risk. If you would invest 1,290 in Srinanaporn Marketing Public on August 28, 2024 and sell it today you would lose (110.00) from holding Srinanaporn Marketing Public or give up 8.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Srinanaporn Marketing Public vs. PTT OIL RETAIL
Performance |
| Timeline |
| Srinanaporn Marketing |
| PTT OIL RETAIL |
Srinanaporn Marketing and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srinanaporn Marketing and PTT OIL
The main advantage of trading using opposite Srinanaporn Marketing and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srinanaporn Marketing 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.| Srinanaporn Marketing vs. Chamni Eye PCL | Srinanaporn Marketing vs. Siam Global House | Srinanaporn Marketing vs. The Erawan Group | Srinanaporn Marketing vs. Ditto Public |
| PTT OIL vs. Digital Telecommunications Infrastructure | PTT OIL vs. Turnkey Communication Services | PTT OIL vs. WHA Industrial Leasehold | PTT OIL vs. Golden Ventures Leasehold |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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