Correlation Between PTG Energy and BTS Group
Can any of the company-specific risk be diversified away by investing in both PTG Energy and BTS Group 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 BTS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTG Energy PCL and BTS Group Holdings, you can compare the effects of market volatilities on PTG Energy and BTS Group 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 BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTG Energy and BTS Group.
Diversification Opportunities for PTG Energy and BTS Group
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTG and BTS is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding PTG Energy PCL and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings 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 PCL are associated (or correlated) with BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of PTG Energy i.e., PTG Energy and BTS Group go up and down completely randomly.
Pair Corralation between PTG Energy and BTS Group
Assuming the 90 days trading horizon PTG Energy PCL is expected to under-perform the BTS Group. But the stock apears to be less risky and, when comparing its historical volatility, PTG Energy PCL is 1.89 times less risky than BTS Group. The stock trades about -0.25 of its potential returns per unit of risk. The BTS Group Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 615.00 in BTS Group Holdings on November 2, 2024 and sell it today you would earn a total of 5.00 from holding BTS Group Holdings or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTG Energy PCL vs. BTS Group Holdings
Performance |
| Timeline |
| PTG Energy PCL |
| BTS Group Holdings |
PTG Energy and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTG Energy and BTS Group
The main advantage of trading using opposite PTG Energy and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTG Energy position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group's long position.| PTG Energy vs. PTT Exploration and | PTG Energy vs. Global Power Synergy | PTG Energy vs. PTT Global Chemical | PTG Energy vs. Gulf Energy Development |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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