Correlation Between PTT Public and RPCG Public
Can any of the company-specific risk be diversified away by investing in both PTT Public and RPCG 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 RPCG 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 RPCG Public, you can compare the effects of market volatilities on PTT Public and RPCG 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 RPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and RPCG Public.
Diversification Opportunities for PTT Public and RPCG Public
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and RPCG is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and RPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPCG 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 RPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPCG Public has no effect on the direction of PTT Public i.e., PTT Public and RPCG Public go up and down completely randomly.
Pair Corralation between PTT Public and RPCG Public
Assuming the 90 days trading horizon PTT Public is expected to generate 57.49 times less return on investment than RPCG Public. But when comparing it to its historical volatility, PTT Public is 42.89 times less risky than RPCG Public. It trades about 0.03 of its potential returns per unit of risk. RPCG Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 88.00 in RPCG Public on September 12, 2024 and sell it today you would lose (42.00) from holding RPCG Public or give up 47.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. RPCG Public
Performance |
| Timeline |
| PTT Public |
| RPCG Public |
PTT Public and RPCG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and RPCG Public
The main advantage of trading using opposite PTT Public and RPCG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, RPCG 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 RPCG Public will offset losses from the drop in RPCG Public's long position.| PTT Public vs. Bangchak Public | PTT Public vs. IRPC Public | PTT Public vs. PTT Exploration and | PTT Public vs. Star Petroleum Refining |
| RPCG Public vs. Bangchak Public | RPCG Public vs. IRPC Public | RPCG Public vs. PTT Exploration and | RPCG Public vs. Star Petroleum Refining |
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 Stocks Directory module to find actively traded stocks across global markets.
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