Correlation Between PTT Exploration and Bangsaphan Barmill
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Bangsaphan Barmill 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 Bangsaphan Barmill 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 Bangsaphan Barmill Public, you can compare the effects of market volatilities on PTT Exploration and Bangsaphan Barmill 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 Bangsaphan Barmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Bangsaphan Barmill.
Diversification Opportunities for PTT Exploration and Bangsaphan Barmill
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Bangsaphan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Bangsaphan Barmill Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangsaphan Barmill 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 Bangsaphan Barmill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangsaphan Barmill Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and Bangsaphan Barmill go up and down completely randomly.
Pair Corralation between PTT Exploration and Bangsaphan Barmill
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 1.08 times more return on investment than Bangsaphan Barmill. However, PTT Exploration is 1.08 times more volatile than Bangsaphan Barmill Public. It trades about 0.02 of its potential returns per unit of risk. Bangsaphan Barmill Public is currently generating about -0.14 per unit of risk. If you would invest 12,600 in PTT Exploration and on September 12, 2024 and sell it today you would earn a total of 50.00 from holding PTT Exploration and or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. Bangsaphan Barmill Public
Performance |
| Timeline |
| PTT Exploration |
| Bangsaphan Barmill Public |
PTT Exploration and Bangsaphan Barmill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Bangsaphan Barmill
The main advantage of trading using opposite PTT Exploration and Bangsaphan Barmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Bangsaphan Barmill 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 Bangsaphan Barmill will offset losses from the drop in Bangsaphan Barmill'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 |
| Bangsaphan Barmill vs. Asia Metal Public | Bangsaphan Barmill vs. Chonburi Concrete Product | Bangsaphan Barmill vs. Asia Plus Group | Bangsaphan Barmill vs. CSP Steel Center |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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