Correlation Between MFC Strategic and PTT OIL

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

By analyzing existing cross correlation between MFC Strategic Storage and PTT OIL RETAIL, you can compare the effects of market volatilities on MFC Strategic and PTT OIL 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 MFC Strategic with a short position of PTT OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFC Strategic and PTT OIL.

Diversification Opportunities for MFC Strategic and PTT OIL

0.13

Correlation Coefficient

MFC Strategic  PTT OIL

Average diversification

The 3 months correlation between MFC and PTT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding MFC Strategic Storage and PTT OIL RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OIL RETAIL and MFC Strategic 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 MFC Strategic Storage are associated (or correlated) with PTT OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OIL RETAIL has no effect on the direction of MFC Strategic i.e., MFC Strategic and PTT OIL go up and down completely randomly.

Pair Corralation between MFC Strategic and PTT OIL

Assuming the 90 days trading horizon MFC Strategic is expected to generate 87.64 times less return on investment than PTT OIL. But when comparing it to its historical volatility, MFC Strategic Storage is 1.39 times less risky than PTT OIL. It trades about 0.0 of its potential returns per unit of risk. PTT OIL RETAIL is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,129  in PTT OIL RETAIL on April 25, 2025 and sell it today you would earn a total of  201.00  from holding PTT OIL RETAIL or generate 17.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.55%
Values	Daily Returns

MFC Strategic Storage  vs.  PTT OIL RETAIL

MFC Strategic Storage

Risk-Adjusted Performance

Very Weak

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

PTT OIL RETAIL

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in PTT OIL RETAIL are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, PTT OIL disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MFC Strategic and PTT OIL

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

The idea behind MFC Strategic Storage and PTT OIL RETAIL 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.