Correlation Between PTG Energy and Solartron Public
Can any of the company-specific risk be diversified away by investing in both PTG Energy and Solartron Public 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 Solartron Public 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 Solartron Public, you can compare the effects of market volatilities on PTG Energy and Solartron Public 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 Solartron Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTG Energy and Solartron Public.
Diversification Opportunities for PTG Energy and Solartron Public
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTG and Solartron is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding PTG Energy PCL and Solartron Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solartron 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 PCL are associated (or correlated) with Solartron Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solartron Public has no effect on the direction of PTG Energy i.e., PTG Energy and Solartron Public go up and down completely randomly.
Pair Corralation between PTG Energy and Solartron Public
Assuming the 90 days trading horizon PTG Energy PCL is expected to generate 0.73 times more return on investment than Solartron Public. However, PTG Energy PCL is 1.37 times less risky than Solartron Public. It trades about -0.2 of its potential returns per unit of risk. Solartron Public is currently generating about -0.2 per unit of risk. If you would invest 939.00 in PTG Energy PCL on September 3, 2024 and sell it today you would lose (74.00) from holding PTG Energy PCL or give up 7.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTG Energy PCL vs. Solartron Public
Performance |
| Timeline |
| PTG Energy PCL |
| Solartron Public |
PTG Energy and Solartron Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTG Energy and Solartron Public
The main advantage of trading using opposite PTG Energy and Solartron Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTG Energy position performs unexpectedly, Solartron Public 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 Solartron Public will offset losses from the drop in Solartron Public's long position.| PTG Energy vs. Central Pattana Public | PTG Energy vs. CP ALL Public | PTG Energy vs. Bangkok Dusit Medical | PTG Energy vs. Airports of Thailand |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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