Correlation Between PTT Global and Hemisphere Energy
Can any of the company-specific risk be diversified away by investing in both PTT Global and Hemisphere Energy 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 Hemisphere Energy 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 Hemisphere Energy Corp, you can compare the effects of market volatilities on PTT Global and Hemisphere Energy 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 Hemisphere Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Hemisphere Energy.
Diversification Opportunities for PTT Global and Hemisphere Energy
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Hemisphere is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Hemisphere Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Energy Corp 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 Hemisphere Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Energy Corp has no effect on the direction of PTT Global i.e., PTT Global and Hemisphere Energy go up and down completely randomly.
Pair Corralation between PTT Global and Hemisphere Energy
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the Hemisphere Energy. In addition to that, PTT Global is 2.31 times more volatile than Hemisphere Energy Corp. It trades about -0.04 of its total potential returns per unit of risk. Hemisphere Energy Corp is currently generating about 0.06 per unit of volatility. If you would invest 101.00 in Hemisphere Energy Corp on October 12, 2024 and sell it today you would earn a total of 20.00 from holding Hemisphere Energy Corp or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. Hemisphere Energy Corp
Performance |
| Timeline |
| PTT Global Chemical |
| Hemisphere Energy Corp |
PTT Global and Hemisphere Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Hemisphere Energy
The main advantage of trading using opposite PTT Global and Hemisphere Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Hemisphere Energy 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 Hemisphere Energy will offset losses from the drop in Hemisphere Energy's long position.| PTT Global vs. Hua Hong Semiconductor | PTT Global vs. Sterling Construction | PTT Global vs. AGRICULTBK HADR25 YC | PTT Global vs. Hanison Construction Holdings |
| Hemisphere Energy vs. Mitsubishi Gas Chemical | Hemisphere Energy vs. PTT Global Chemical | Hemisphere Energy vs. American Homes 4 | Hemisphere Energy vs. Corporate Office Properties |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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