Correlation Between PTT Oil and Plan B

Can any of the company-specific risk be diversified away by investing in both PTT Oil and Plan B 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 Plan B 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 Plan B Media, you can compare the effects of market volatilities on PTT Oil and Plan B 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 Plan B. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Oil and Plan B.

Diversification Opportunities for PTT Oil and Plan B

0.72

Correlation Coefficient

PTT Oil  Plan B

Poor diversification

The 3 months correlation between PTT and Plan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding PTT Oil and and Plan B Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plan B Media 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 Plan B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plan B Media has no effect on the direction of PTT Oil i.e., PTT Oil and Plan B go up and down completely randomly.

Pair Corralation between PTT Oil and Plan B

Assuming the 90 days horizon PTT Oil and is expected to under-perform the Plan B. In addition to that, PTT Oil is 1.14 times more volatile than Plan B Media. It trades about -0.3 of its total potential returns per unit of risk. Plan B Media is currently generating about 0.05 per unit of volatility. If you would invest  735.00  in Plan B Media on October 9, 2024 and sell it today you would earn a total of  10.00  from holding Plan B Media or generate 1.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PTT Oil and  vs.  Plan B Media

PTT Oil

Risk-Adjusted Performance

0 of 100

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.

Plan B Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Plan B Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Plan B is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PTT Oil and Plan B

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

The idea behind PTT Oil and and Plan B Media 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.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.