Correlation Between SPCG Public and PTT OIL

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

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

Diversification Opportunities for SPCG Public and PTT OIL

0.42

Correlation Coefficient

SPCG Public  PTT OIL

Very weak diversification

The 3 months correlation between SPCG and PTT is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SPCG Public 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 SPCG Public 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 SPCG Public 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 SPCG Public i.e., SPCG Public and PTT OIL go up and down completely randomly.

Pair Corralation between SPCG Public and PTT OIL

If you would invest (100.00) in SPCG Public on January 28, 2024 and sell it today you would earn a total of  100.00  from holding SPCG Public or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

SPCG Public  vs.  PTT OIL RETAIL

SPCG Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SPCG Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

PTT OIL RETAIL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PTT OIL RETAIL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with SPCG Public and PTT OIL

The main advantage of trading using opposite SPCG Public and PTT OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPCG Public 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 SPCG Public 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.