Correlation Between PTT Exploration and Krung Thai
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By analyzing existing cross correlation between PTT Exploration and and Krung Thai Bank, you can compare the effects of market volatilities on PTT Exploration and Krung Thai 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 Krung Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Krung Thai.
Diversification Opportunities for PTT Exploration and Krung Thai
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Krung is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Krung Thai Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krung Thai Bank 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 Krung Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krung Thai Bank has no effect on the direction of PTT Exploration i.e., PTT Exploration and Krung Thai go up and down completely randomly.
Pair Corralation between PTT Exploration and Krung Thai
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 50.1 times more return on investment than Krung Thai. However, PTT Exploration is 50.1 times more volatile than Krung Thai Bank. It trades about 0.06 of its potential returns per unit of risk. Krung Thai Bank is currently generating about 0.03 per unit of risk. If you would invest 18,917 in PTT Exploration and on August 28, 2024 and sell it today you would lose (5,967) from holding PTT Exploration and or give up 31.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
PTT Exploration and vs. Krung Thai Bank
Performance |
| Timeline |
| PTT Exploration |
| Krung Thai Bank |
PTT Exploration and Krung Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Krung Thai
The main advantage of trading using opposite PTT Exploration and Krung Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Krung Thai 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 Krung Thai will offset losses from the drop in Krung Thai'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 |
| Krung Thai vs. Supalai Public | Krung Thai vs. Thai Oil Public | Krung Thai vs. The Erawan Group | Krung Thai vs. Ditto 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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