Correlation Between PTT Global and BORR DRILLING
Can any of the company-specific risk be diversified away by investing in both PTT Global and BORR DRILLING 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 Global and BORR DRILLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Global Chemical and BORR DRILLING NEW, you can compare the effects of market volatilities on PTT Global and BORR DRILLING 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 Global with a short position of BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and BORR DRILLING.
Diversification Opportunities for PTT Global and BORR DRILLING
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and BORR is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and BORR DRILLING NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORR DRILLING NEW and PTT Global 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 Global Chemical are associated (or correlated) with BORR DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORR DRILLING NEW has no effect on the direction of PTT Global i.e., PTT Global and BORR DRILLING go up and down completely randomly.
Pair Corralation between PTT Global and BORR DRILLING
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 5.57 times more return on investment than BORR DRILLING. However, PTT Global is 5.57 times more volatile than BORR DRILLING NEW. It trades about 0.03 of its potential returns per unit of risk. BORR DRILLING NEW is currently generating about 0.0 per unit of risk. If you would invest 108.00 in PTT Global Chemical on October 13, 2024 and sell it today you would lose (48.00) from holding PTT Global Chemical or give up 44.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. BORR DRILLING NEW
Performance |
| Timeline |
| PTT Global Chemical |
| BORR DRILLING NEW |
PTT Global and BORR DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and BORR DRILLING
The main advantage of trading using opposite PTT Global and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, BORR DRILLING 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 BORR DRILLING will offset losses from the drop in BORR DRILLING's long position.| PTT Global vs. Broadwind | PTT Global vs. CanSino Biologics | PTT Global vs. ScanSource | PTT Global vs. FRACTAL GAMING GROUP |
| BORR DRILLING vs. VIENNA INSURANCE GR | BORR DRILLING vs. Sanyo Chemical Industries | BORR DRILLING vs. QBE Insurance Group | BORR DRILLING vs. PTT Global Chemical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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