Correlation Between PTT Oil and Delta Electronics

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Can any of the company-specific risk be diversified away by investing in both PTT Oil and Delta Electronics 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 and Delta Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Oil and and Delta Electronics Public, you can compare the effects of market volatilities on PTT Oil and Delta Electronics 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 with a short position of Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Oil and Delta Electronics.

Diversification Opportunities for PTT Oil and Delta Electronics

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between PTT and Delta is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PTT Oil and and Delta Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Electronics Public and PTT 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 PTT Oil and are associated (or correlated) with Delta Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Electronics Public has no effect on the direction of PTT Oil i.e., PTT Oil and Delta Electronics go up and down completely randomly.

Pair Corralation between PTT Oil and Delta Electronics

Assuming the 90 days horizon PTT Oil and is expected to under-perform the Delta Electronics. But the stock apears to be less risky and, when comparing its historical volatility, PTT Oil and is 1.93 times less risky than Delta Electronics. The stock trades about -0.27 of its potential returns per unit of risk. The Delta Electronics Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  13,650  in Delta Electronics Public on October 25, 2024 and sell it today you would earn a total of  1,050  from holding Delta Electronics Public or generate 7.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

PTT Oil and  vs.  Delta Electronics Public

 Performance 
       Timeline  
PTT Oil 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PTT Oil and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Delta Electronics Public 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Delta Electronics Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Delta Electronics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

PTT Oil and Delta Electronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PTT Oil and Delta Electronics

The main advantage of trading using opposite PTT Oil and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Oil position performs unexpectedly, Delta Electronics 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 Delta Electronics will offset losses from the drop in Delta Electronics' long position.
The idea behind PTT Oil and and Delta Electronics Public 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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