Correlation Between PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR-

Can any of the company-specific risk be diversified away by investing in both PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR- 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 PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR- into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PTT OILRETBUS FOR BA10 and PTT OILRETBUS NVDR 10, you can compare the effects of market volatilities on PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR- 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 PTT OIL+RETBUS-FOR-B with a short position of PTT OIL+RETBUS-NVDR-. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR-.

Diversification Opportunities for PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR-

0.0

Correlation Coefficient

PTT OIL+RETBUS-FOR-B  PTT OIL+RETBUS-NVDR-

Pay attention - limited upside

The 3 months correlation between PTT and PTT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PTT OILRETBUS FOR BA10 and PTT OILRETBUS NVDR 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OIL+RETBUS-NVDR- and PTT OIL+RETBUS-FOR-B 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 PTT OILRETBUS FOR BA10 are associated (or correlated) with PTT OIL+RETBUS-NVDR-. 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+RETBUS-NVDR- has no effect on the direction of PTT OIL+RETBUS-FOR-B i.e., PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR- go up and down completely randomly.

Pair Corralation between PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR-

If you would invest (100.00) in PTT OILRETBUS NVDR 10 on December 27, 2024 and sell it today you would earn a total of  100.00  from holding PTT OILRETBUS NVDR 10 or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PTT OILRETBUS FOR BA10  vs.  PTT OILRETBUS NVDR 10

PTT OIL+RETBUS-FOR-B

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTT OILRETBUS FOR BA10 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PTT OIL+RETBUS-FOR-B is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

PTT OIL+RETBUS-NVDR-

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTT OILRETBUS NVDR 10 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PTT OIL+RETBUS-NVDR- is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR-

The main advantage of trading using opposite PTT OIL+RETBUS-FOR-B and PTT OIL+RETBUS-NVDR- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT OIL+RETBUS-FOR-B position performs unexpectedly, PTT OIL+RETBUS-NVDR- 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+RETBUS-NVDR- will offset losses from the drop in PTT OIL+RETBUS-NVDR-'s long position.

The idea behind PTT OILRETBUS FOR BA10 and PTT OILRETBUS NVDR 10 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.