Correlation Between TotalEnergies and PTT PCL
Can any of the company-specific risk be diversified away by investing in both TotalEnergies and PTT PCL 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 TotalEnergies and PTT PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TotalEnergies SE and PTT PCL ADR, you can compare the effects of market volatilities on TotalEnergies and PTT PCL 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 TotalEnergies with a short position of PTT PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and PTT PCL.
Diversification Opportunities for TotalEnergies and PTT PCL
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TotalEnergies and PTT is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE and PTT PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT PCL ADR and TotalEnergies 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 TotalEnergies SE are associated (or correlated) with PTT PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT PCL ADR has no effect on the direction of TotalEnergies i.e., TotalEnergies and PTT PCL go up and down completely randomly.
Pair Corralation between TotalEnergies and PTT PCL
Assuming the 90 days horizon TotalEnergies SE is expected to under-perform the PTT PCL. In addition to that, TotalEnergies is 1.55 times more volatile than PTT PCL ADR. It trades about -0.3 of its total potential returns per unit of risk. PTT PCL ADR is currently generating about 0.22 per unit of volatility. If you would invest 495.00 in PTT PCL ADR on August 28, 2024 and sell it today you would earn a total of 27.00 from holding PTT PCL ADR or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TotalEnergies SE vs. PTT PCL ADR
Performance |
| Timeline |
| TotalEnergies SE |
| PTT PCL ADR |
TotalEnergies and PTT PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TotalEnergies and PTT PCL
The main advantage of trading using opposite TotalEnergies and PTT PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TotalEnergies position performs unexpectedly, PTT PCL 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 PCL will offset losses from the drop in PTT PCL's long position.| TotalEnergies vs. MOL PLC ADR | TotalEnergies vs. PetroChina Co Ltd | TotalEnergies vs. Equinor ASA | TotalEnergies vs. Shell PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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