Correlation Between PTT Exploration and Bangchak Public
Can any of the company-specific risk be diversified away by investing in both PTT Exploration 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 Exploration 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 Exploration and and Bangchak Public, you can compare the effects of market volatilities on PTT Exploration 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 Exploration with a short position of Bangchak Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Bangchak Public.
Diversification Opportunities for PTT Exploration and Bangchak Public
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and Bangchak is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak 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 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 Exploration i.e., PTT Exploration and Bangchak Public go up and down completely randomly.
Pair Corralation between PTT Exploration and Bangchak Public
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 0.55 times more return on investment than Bangchak Public. However, PTT Exploration and is 1.8 times less risky than Bangchak Public. It trades about -0.01 of its potential returns per unit of risk. Bangchak Public is currently generating about -0.17 per unit of risk. If you would invest 12,700 in PTT Exploration and on September 4, 2024 and sell it today you would lose (100.00) from holding PTT Exploration and or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PTT Exploration and vs. Bangchak Public
Performance |
| Timeline |
| PTT Exploration |
| Bangchak Public |
PTT Exploration and Bangchak Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Bangchak Public
The main advantage of trading using opposite PTT Exploration and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration 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 Exploration vs. PTT Public | PTT Exploration vs. PTT Global Chemical | PTT Exploration vs. The Siam Cement | PTT Exploration vs. SCB X Public |
| Bangchak Public vs. PTT Public | Bangchak Public vs. SCB X Public | Bangchak Public vs. The Siam Commercial | Bangchak Public vs. The Siam Cement |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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