Correlation Between PTT Exploration and CP ALL
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By analyzing existing cross correlation between PTT Exploration and and CP ALL Public, you can compare the effects of market volatilities on PTT Exploration and CP ALL 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 Exploration with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and CP ALL.
Diversification Opportunities for PTT Exploration and CP ALL
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and CPALL-R is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and PTT Exploration 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 Exploration and are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and CP ALL go up and down completely randomly.
Pair Corralation between PTT Exploration and CP ALL
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 49.29 times more return on investment than CP ALL. However, PTT Exploration is 49.29 times more volatile than CP ALL Public. It trades about 0.06 of its potential returns per unit of risk. CP ALL Public is currently generating about 0.01 per unit of risk. If you would invest 18,917 in PTT Exploration and on August 24, 2024 and sell it today you would lose (6,167) from holding PTT Exploration and or give up 32.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. CP ALL Public
Performance |
| Timeline |
| PTT Exploration |
| CP ALL Public |
PTT Exploration and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and CP ALL
The main advantage of trading using opposite PTT Exploration and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| PTT Exploration vs. PTT Public | PTT Exploration vs. CP ALL Public | PTT Exploration vs. Airports of Thailand | PTT Exploration vs. PTT Exploration and |
| CP ALL vs. Airports of Thailand | CP ALL vs. CP ALL Public | CP ALL vs. Charoen Pokphand Foods | CP ALL vs. Bangkok Dusit Medical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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