Correlation Between Citigroup and PTT Exploration
Can any of the company-specific risk be diversified away by investing in both Citigroup and PTT Exploration 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 Citigroup and PTT Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PTT Exploration and, you can compare the effects of market volatilities on Citigroup and PTT Exploration 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 Citigroup with a short position of PTT Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PTT Exploration.
Diversification Opportunities for Citigroup and PTT Exploration
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and PTT is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PTT Exploration and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Exploration and Citigroup 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 Citigroup are associated (or correlated) with PTT Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Exploration has no effect on the direction of Citigroup i.e., Citigroup and PTT Exploration go up and down completely randomly.
Pair Corralation between Citigroup and PTT Exploration
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.26 times more return on investment than PTT Exploration. However, Citigroup is 1.26 times more volatile than PTT Exploration and. It trades about 0.08 of its potential returns per unit of risk. PTT Exploration and is currently generating about -0.02 per unit of risk. If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.17% |
| Values | Daily Returns |
Citigroup vs. PTT Exploration and
Performance |
| Timeline |
| Citigroup |
| PTT Exploration |
Citigroup and PTT Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PTT Exploration
The main advantage of trading using opposite Citigroup and PTT Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PTT Exploration 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 Exploration will offset losses from the drop in PTT Exploration's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| PTT Exploration vs. PTT Public | PTT Exploration vs. PTT Global Chemical | PTT Exploration vs. The Siam Cement | PTT Exploration vs. SCB X Public |
Check out your portfolio center.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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |