Correlation Between TotalEnergies and PTT Public

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

Diversification Opportunities for TotalEnergies and PTT Public

0.6

Correlation Coefficient

TotalEnergies  PTT Public

Poor diversification

The 3 months correlation between TotalEnergies and PTT is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public 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 Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Public has no effect on the direction of TotalEnergies i.e., TotalEnergies and PTT Public go up and down completely randomly.

Pair Corralation between TotalEnergies and PTT Public

Assuming the 90 days trading horizon TotalEnergies SE is expected to under-perform the PTT Public. But the stock apears to be less risky and, when comparing its historical volatility, TotalEnergies SE is 1.19 times less risky than PTT Public. The stock trades about -0.08 of its potential returns per unit of risk. The PTT Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  87.00  in PTT Public on October 2, 2024 and sell it today you would earn a total of  1.00  from holding PTT Public or generate 1.15% return on investment over 90 days.

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

TotalEnergies SE  vs.  PTT Public

TotalEnergies SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TotalEnergies SE 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.

PTT Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with TotalEnergies and PTT Public

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

The idea behind TotalEnergies SE and PTT 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.