Correlation Between PTT Public and Ai Energy
Can any of the company-specific risk be diversified away by investing in both PTT Public and Ai 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 PTT Public and Ai Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Ai Energy Public, you can compare the effects of market volatilities on PTT Public and Ai 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 PTT Public with a short position of Ai Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Ai Energy.
Diversification Opportunities for PTT Public and Ai Energy
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and AIE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Ai Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ai Energy Public and PTT 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 PTT Public are associated (or correlated) with Ai Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ai Energy Public has no effect on the direction of PTT Public i.e., PTT Public and Ai Energy go up and down completely randomly.
Pair Corralation between PTT Public and Ai Energy
Assuming the 90 days trading horizon PTT Public is expected to generate 1.02 times more return on investment than Ai Energy. However, PTT Public is 1.02 times more volatile than Ai Energy Public. It trades about -0.07 of its potential returns per unit of risk. Ai Energy Public is currently generating about -0.17 per unit of risk. If you would invest 3,425 in PTT Public on August 27, 2024 and sell it today you would lose (50.00) from holding PTT Public or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Ai Energy Public
Performance |
| Timeline |
| PTT Public |
| Ai Energy Public |
PTT Public and Ai Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Ai Energy
The main advantage of trading using opposite PTT Public and Ai Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Ai 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 Ai Energy will offset losses from the drop in Ai Energy's long position.| PTT Public vs. PTT Exploration and | PTT Public vs. The Siam Cement | PTT Public vs. CP ALL Public | PTT Public vs. Airports of Thailand |
| Ai Energy vs. Krung Thai Bank | Ai Energy vs. Thai Union Group | Ai Energy vs. PTT Public | Ai Energy vs. PTT Exploration and |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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