Correlation Between PTT Public and BGrimm Power
Can any of the company-specific risk be diversified away by investing in both PTT Public and BGrimm Power 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 BGrimm Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and BGrimm Power Public, you can compare the effects of market volatilities on PTT Public and BGrimm Power 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 BGrimm Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and BGrimm Power.
Diversification Opportunities for PTT Public and BGrimm Power
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and BGrimm is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and BGrimm Power Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGrimm Power 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 BGrimm Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGrimm Power Public has no effect on the direction of PTT Public i.e., PTT Public and BGrimm Power go up and down completely randomly.
Pair Corralation between PTT Public and BGrimm Power
Assuming the 90 days trading horizon PTT Public is expected to under-perform the BGrimm Power. But the stock apears to be less risky and, when comparing its historical volatility, PTT Public is 1.25 times less risky than BGrimm Power. The stock trades about -0.14 of its potential returns per unit of risk. The BGrimm Power Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,040 in BGrimm Power Public on September 14, 2024 and sell it today you would earn a total of 40.00 from holding BGrimm Power Public or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. BGrimm Power Public
Performance |
| Timeline |
| PTT Public |
| BGrimm Power Public |
PTT Public and BGrimm Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and BGrimm Power
The main advantage of trading using opposite PTT Public and BGrimm Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, BGrimm Power 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 BGrimm Power will offset losses from the drop in BGrimm Power'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 |
| BGrimm Power vs. WHA Public | BGrimm Power vs. Global Power Synergy | BGrimm Power vs. TPI Polene Power | BGrimm Power vs. Bangkok Expressway 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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