Correlation Between Thai Oil and PTT Exploration
Can any of the company-specific risk be diversified away by investing in both Thai Oil and PTT Exploration 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 Thai Oil and PTT Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Oil Public and PTT Exploration and, you can compare the effects of market volatilities on Thai Oil and PTT Exploration 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 Thai Oil with a short position of PTT Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Oil and PTT Exploration.
Diversification Opportunities for Thai Oil and PTT Exploration
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thai and PTT is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Thai Oil Public and PTT Exploration and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Exploration and Thai 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 Thai Oil Public are associated (or correlated) with PTT Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Exploration has no effect on the direction of Thai Oil i.e., Thai Oil and PTT Exploration go up and down completely randomly.
Pair Corralation between Thai Oil and PTT Exploration
Assuming the 90 days trading horizon Thai Oil Public is expected to generate 1.27 times more return on investment than PTT Exploration. However, Thai Oil is 1.27 times more volatile than PTT Exploration and. It trades about -0.01 of its potential returns per unit of risk. PTT Exploration and is currently generating about -0.04 per unit of risk. If you would invest 4,363 in Thai Oil Public on August 26, 2024 and sell it today you would lose (313.00) from holding Thai Oil Public or give up 7.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Oil Public vs. PTT Exploration and
Performance |
| Timeline |
| Thai Oil Public |
| PTT Exploration |
Thai Oil and PTT Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Oil and PTT Exploration
The main advantage of trading using opposite Thai Oil and PTT Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Oil position performs unexpectedly, PTT Exploration 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 Exploration will offset losses from the drop in PTT Exploration's long position.| Thai Oil vs. AddTech Hub Public | Thai Oil vs. Premier Marketing Public | Thai Oil vs. Silicon Craft Technology | Thai Oil vs. BPS TECHNOLOGY PUBLIC |
| PTT Exploration vs. PTT Oil and | PTT Exploration vs. Power Solution Technologies | PTT Exploration vs. Star Petroleum Refining | PTT Exploration vs. Prima Marine 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |