Correlation Between Phillips and PTT OILRETBUS

Can any of the company-specific risk be diversified away by investing in both Phillips and PTT OILRETBUS 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 Phillips and PTT OILRETBUS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Phillips 66 and PTT OILRETBUS NVDR 10, you can compare the effects of market volatilities on Phillips and PTT OILRETBUS 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 Phillips with a short position of PTT OILRETBUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phillips and PTT OILRETBUS.

Diversification Opportunities for Phillips and PTT OILRETBUS

-0.32

Correlation Coefficient

Phillips  PTT OILRETBUS

Very good diversification

The 3 months correlation between Phillips and PTT is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Phillips 66 and PTT OILRETBUS NVDR 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OILRETBUS NVDR and Phillips 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 Phillips 66 are associated (or correlated) with PTT OILRETBUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OILRETBUS NVDR has no effect on the direction of Phillips i.e., Phillips and PTT OILRETBUS go up and down completely randomly.

Pair Corralation between Phillips and PTT OILRETBUS

Assuming the 90 days horizon Phillips 66 is expected to generate 0.8 times more return on investment than PTT OILRETBUS. However, Phillips 66 is 1.25 times less risky than PTT OILRETBUS. It trades about 0.05 of its potential returns per unit of risk. PTT OILRETBUS NVDR 10 is currently generating about -0.09 per unit of risk. If you would invest  11,302  in Phillips 66 on September 14, 2024 and sell it today you would earn a total of  566.00  from holding Phillips 66 or generate 5.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Phillips 66  vs.  PTT OILRETBUS NVDR 10

Phillips 66

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phillips 66 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Phillips is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

PTT OILRETBUS NVDR

Risk-Adjusted Performance

0 of 100

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Phillips and PTT OILRETBUS

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

The idea behind Phillips 66 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.