Correlation Between Tipco Foods and PTT OIL
Can any of the company-specific risk be diversified away by investing in both Tipco Foods 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 Tipco Foods and PTT OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tipco Foods Public and PTT OIL RETAIL, you can compare the effects of market volatilities on Tipco Foods 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 Tipco Foods with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tipco Foods and PTT OIL.
Diversification Opportunities for Tipco Foods and PTT OIL
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tipco and PTT is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Tipco Foods 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 Tipco Foods 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 Tipco Foods 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 Tipco Foods i.e., Tipco Foods and PTT OIL go up and down completely randomly.
Pair Corralation between Tipco Foods and PTT OIL
Assuming the 90 days trading horizon Tipco Foods Public is expected to generate 24.87 times more return on investment than PTT OIL. However, Tipco Foods is 24.87 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 824.00 in Tipco Foods Public on December 2, 2024 and sell it today you would earn a total of 176.00 from holding Tipco Foods Public or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tipco Foods Public vs. PTT OIL RETAIL
Performance |
| Timeline |
| Tipco Foods Public |
| PTT OIL RETAIL |
Tipco Foods and PTT OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tipco Foods and PTT OIL
The main advantage of trading using opposite Tipco Foods and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tipco Foods 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.| Tipco Foods vs. Tipco Asphalt Public | Tipco Foods vs. Thai Vegetable Oil | Tipco Foods vs. Thai Union Group | Tipco Foods vs. TISCO Financial Group |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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