Correlation Between PTG Energy and Central Pattana
Can any of the company-specific risk be diversified away by investing in both PTG Energy and Central Pattana 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 PTG Energy and Central Pattana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTG Energy Public and Central Pattana Public, you can compare the effects of market volatilities on PTG Energy and Central Pattana 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 PTG Energy with a short position of Central Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTG Energy and Central Pattana.
Diversification Opportunities for PTG Energy and Central Pattana
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between PTG and Central is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding PTG Energy Public and Central Pattana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Pattana Public and PTG Energy 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 PTG Energy Public are associated (or correlated) with Central Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Pattana Public has no effect on the direction of PTG Energy i.e., PTG Energy and Central Pattana go up and down completely randomly.
Pair Corralation between PTG Energy and Central Pattana
Assuming the 90 days trading horizon PTG Energy Public is expected to under-perform the Central Pattana. In addition to that, PTG Energy is 2.22 times more volatile than Central Pattana Public. It trades about -0.22 of its total potential returns per unit of risk. Central Pattana Public is currently generating about -0.27 per unit of volatility. If you would invest 6,575 in Central Pattana Public on September 3, 2024 and sell it today you would lose (575.00) from holding Central Pattana Public or give up 8.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTG Energy Public vs. Central Pattana Public
Performance |
| Timeline |
| PTG Energy Public |
| Central Pattana Public |
PTG Energy and Central Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTG Energy and Central Pattana
The main advantage of trading using opposite PTG Energy and Central Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTG Energy position performs unexpectedly, Central Pattana 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 Central Pattana will offset losses from the drop in Central Pattana's long position.| PTG Energy vs. PTG Energy PCL | PTG Energy vs. TQM PORATION | PTG Energy vs. PTT Exploration and | PTG Energy vs. PTT Public |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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