Correlation Between PTT OILRETBUS and IRPC Public

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

Diversification Opportunities for PTT OILRETBUS and IRPC Public

0.84

Correlation Coefficient

PTT OILRETBUS  IRPC Public

Very poor diversification

The 3 months correlation between PTT and IRPC is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding PTT OILRETBUS FOR BA10 and IRPC Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRPC Public and PTT OILRETBUS 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 IRPC Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRPC Public has no effect on the direction of PTT OILRETBUS i.e., PTT OILRETBUS and IRPC Public go up and down completely randomly.

Pair Corralation between PTT OILRETBUS and IRPC Public

Assuming the 90 days horizon PTT OILRETBUS is expected to generate 7.73 times less return on investment than IRPC Public. But when comparing it to its historical volatility, PTT OILRETBUS FOR BA10 is 1.46 times less risky than IRPC Public. It trades about 0.01 of its potential returns per unit of risk. IRPC Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1.65  in IRPC Public on April 24, 2025 and sell it today you would earn a total of  0.20  from holding IRPC Public or generate 12.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

PTT OILRETBUS FOR BA10  vs.  IRPC Public

PTT OILRETBUS FOR

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 OILRETBUS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

IRPC Public

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in IRPC Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting forward indicators, IRPC Public reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PTT OILRETBUS and IRPC Public

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

The idea behind PTT OILRETBUS FOR BA10 and IRPC 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.