Correlation Between PTT Public and Capital Engineering
Can any of the company-specific risk be diversified away by investing in both PTT Public and Capital Engineering 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 Capital Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Capital Engineering Network, you can compare the effects of market volatilities on PTT Public and Capital Engineering 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 Capital Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Capital Engineering.
Diversification Opportunities for PTT Public and Capital Engineering
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and Capital is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Capital Engineering Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Engineering 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 Capital Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Engineering has no effect on the direction of PTT Public i.e., PTT Public and Capital Engineering go up and down completely randomly.
Pair Corralation between PTT Public and Capital Engineering
Assuming the 90 days trading horizon PTT Public is expected to under-perform the Capital Engineering. In addition to that, PTT Public is 2.68 times more volatile than Capital Engineering Network. It trades about -0.19 of its total potential returns per unit of risk. Capital Engineering Network is currently generating about -0.06 per unit of volatility. If you would invest 200.00 in Capital Engineering Network on August 30, 2024 and sell it today you would lose (1.00) from holding Capital Engineering Network or give up 0.5% 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. Capital Engineering Network
Performance |
| Timeline |
| PTT Public |
| Capital Engineering |
PTT Public and Capital Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Capital Engineering
The main advantage of trading using opposite PTT Public and Capital Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Capital Engineering 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 Capital Engineering will offset losses from the drop in Capital Engineering'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 |
| Capital Engineering vs. 2S Metal Public | Capital Engineering vs. AAPICO Hitech Public | Capital Engineering vs. AJ Plast 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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