Correlation Between Project Planning and PTT Oil

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

By analyzing existing cross correlation between Project Planning Service and PTT Oil and, you can compare the effects of market volatilities on Project Planning 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 Project Planning with a short position of PTT Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Project Planning and PTT Oil.

Diversification Opportunities for Project Planning and PTT Oil

-0.16

Correlation Coefficient

Project Planning  PTT Oil

Good diversification

The 3 months correlation between Project and PTT is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Project Planning Service and PTT Oil and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Oil and Project Planning 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 Project Planning Service 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 has no effect on the direction of Project Planning i.e., Project Planning and PTT Oil go up and down completely randomly.

Pair Corralation between Project Planning and PTT Oil

Assuming the 90 days trading horizon Project Planning Service is expected to generate 2.39 times more return on investment than PTT Oil. However, Project Planning is 2.39 times more volatile than PTT Oil and. It trades about 0.16 of its potential returns per unit of risk. PTT Oil and is currently generating about 0.0 per unit of risk. If you would invest  17.00  in Project Planning Service on April 21, 2025 and sell it today you would earn a total of  9.00  from holding Project Planning Service or generate 52.94% return on investment over 90 days.

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

Project Planning Service  vs.  PTT Oil and

Project Planning Service

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Project Planning Service are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Project Planning disclosed solid returns over the last few months and may actually be approaching a breakup point.

PTT Oil

Risk-Adjusted Performance

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 quite persistent fundamental drivers, PTT Oil is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Project Planning and PTT Oil

The main advantage of trading using opposite Project Planning and PTT Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Project Planning 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 Project Planning Service and PTT Oil and 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.