Correlation Between PTT Global and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both PTT Global and Pembina Pipeline 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 Pembina Pipeline 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 Pembina Pipeline Corp, you can compare the effects of market volatilities on PTT Global and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Pembina Pipeline.
Diversification Opportunities for PTT Global and Pembina Pipeline
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Pembina is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of PTT Global i.e., PTT Global and Pembina Pipeline go up and down completely randomly.
Pair Corralation between PTT Global and Pembina Pipeline
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 19.32 times more return on investment than Pembina Pipeline. However, PTT Global is 19.32 times more volatile than Pembina Pipeline Corp. It trades about 0.04 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.1 per unit of risk. If you would invest 108.00 in PTT Global Chemical on August 31, 2024 and sell it today you would lose (44.00) from holding PTT Global Chemical or give up 40.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. Pembina Pipeline Corp
Performance |
| Timeline |
| PTT Global Chemical |
| Pembina Pipeline Corp |
PTT Global and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Pembina Pipeline
The main advantage of trading using opposite PTT Global and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.The idea behind PTT Global Chemical and Pembina Pipeline Corp 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.| Pembina Pipeline vs. Superior Plus Corp | Pembina Pipeline vs. NMI Holdings | Pembina Pipeline vs. Origin Agritech | Pembina Pipeline vs. SIVERS SEMICONDUCTORS AB |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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