Correlation Between PTT Public and Bangchak Public
Can any of the company-specific risk be diversified away by investing in both PTT Public and Bangchak 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 PTT Public and Bangchak Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Bangchak Public, you can compare the effects of market volatilities on PTT Public and Bangchak 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 PTT Public with a short position of Bangchak Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Bangchak Public.
Diversification Opportunities for PTT Public and Bangchak Public
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTT and Bangchak is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak 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 Bangchak Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangchak Public has no effect on the direction of PTT Public i.e., PTT Public and Bangchak Public go up and down completely randomly.
Pair Corralation between PTT Public and Bangchak Public
Assuming the 90 days trading horizon PTT Public is expected to generate 1.08 times less return on investment than Bangchak Public. But when comparing it to its historical volatility, PTT Public is 1.78 times less risky than Bangchak Public. It trades about 0.19 of its potential returns per unit of risk. Bangchak Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,550 in Bangchak Public on November 27, 2024 and sell it today you would earn a total of 175.00 from holding Bangchak Public or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Bangchak Public
Performance |
| Timeline |
| PTT Public |
| Bangchak Public |
PTT Public and Bangchak Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Bangchak Public
The main advantage of trading using opposite PTT Public and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Bangchak 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 Bangchak Public will offset losses from the drop in Bangchak Public's long position.| PTT Public vs. IRPC Public | PTT Public vs. PTT Oil and | PTT Public vs. Power Solution Technologies | PTT Public vs. Star Petroleum Refining |
| Bangchak Public vs. Thai Oil Public | Bangchak Public vs. PTT Public | Bangchak Public vs. PTT Global Chemical | Bangchak Public vs. IRPC Public |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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