Correlation Between Inoue Rubber and PTG Energy
Can any of the company-specific risk be diversified away by investing in both Inoue Rubber and PTG 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 Inoue Rubber and PTG Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inoue Rubber Public and PTG Energy PCL, you can compare the effects of market volatilities on Inoue Rubber and PTG 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 Inoue Rubber with a short position of PTG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inoue Rubber and PTG Energy.
Diversification Opportunities for Inoue Rubber and PTG Energy
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inoue and PTG is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Inoue Rubber Public and PTG Energy PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTG Energy PCL and Inoue Rubber 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 Inoue Rubber Public are associated (or correlated) with PTG Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTG Energy PCL has no effect on the direction of Inoue Rubber i.e., Inoue Rubber and PTG Energy go up and down completely randomly.
Pair Corralation between Inoue Rubber and PTG Energy
Assuming the 90 days trading horizon Inoue Rubber is expected to generate 1.78 times less return on investment than PTG Energy. But when comparing it to its historical volatility, Inoue Rubber Public is 2.01 times less risky than PTG Energy. It trades about 0.07 of its potential returns per unit of risk. PTG Energy PCL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 840.00 in PTG Energy PCL on October 9, 2024 and sell it today you would earn a total of 10.00 from holding PTG Energy PCL or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inoue Rubber Public vs. PTG Energy PCL
Performance |
| Timeline |
| Inoue Rubber Public |
| PTG Energy PCL |
Inoue Rubber and PTG Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inoue Rubber and PTG Energy
The main advantage of trading using opposite Inoue Rubber and PTG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inoue Rubber position performs unexpectedly, PTG 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 PTG Energy will offset losses from the drop in PTG Energy's long position.| Inoue Rubber vs. Hwa Fong Rubber | Inoue Rubber vs. AAPICO Hitech Public | Inoue Rubber vs. Haad Thip Public | Inoue Rubber vs. Goodyear Public |
| PTG Energy vs. PTT Exploration and | PTG Energy vs. Global Power Synergy | PTG Energy vs. PTT Global Chemical | PTG Energy vs. Gulf Energy Development |
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
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |