Correlation Between PRG Public and Thai Energy
Can any of the company-specific risk be diversified away by investing in both PRG Public and Thai 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 PRG Public and Thai Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PRG Public and Thai Energy Storage, you can compare the effects of market volatilities on PRG Public and Thai 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 PRG Public with a short position of Thai Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PRG Public and Thai Energy.
Diversification Opportunities for PRG Public and Thai Energy
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between PRG and Thai is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PRG Public and Thai Energy Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Energy Storage and PRG Public 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 PRG Public are associated (or correlated) with Thai Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Energy Storage has no effect on the direction of PRG Public i.e., PRG Public and Thai Energy go up and down completely randomly.
Pair Corralation between PRG Public and Thai Energy
Assuming the 90 days trading horizon PRG Public is expected to generate 1.4 times more return on investment than Thai Energy. However, PRG Public is 1.4 times more volatile than Thai Energy Storage. It trades about 0.07 of its potential returns per unit of risk. Thai Energy Storage is currently generating about 0.05 per unit of risk. If you would invest 1,024 in PRG Public on August 28, 2024 and sell it today you would lose (139.00) from holding PRG Public or give up 13.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
PRG Public vs. Thai Energy Storage
Performance |
| Timeline |
| PRG Public |
| Thai Energy Storage |
PRG Public and Thai Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PRG Public and Thai Energy
The main advantage of trading using opposite PRG Public and Thai Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PRG Public position performs unexpectedly, Thai 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 Thai Energy will offset losses from the drop in Thai Energy's long position.| PRG Public vs. Surapon Foods Public | PRG Public vs. Peoples Garment Public | PRG Public vs. President Bakery Public | PRG Public vs. Sri Trang Agro Industry |
| Thai Energy vs. AJ Advance Technology | Thai Energy vs. Asia Precision Public | Thai Energy vs. Asia Metal Public | Thai Energy vs. The Erawan Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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