Correlation Between PTT Exploration and Capital Engineering
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Capital Engineering 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 Capital Engineering 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 Capital Engineering Network, you can compare the effects of market volatilities on PTT Exploration and Capital Engineering 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 Capital Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Capital Engineering.
Diversification Opportunities for PTT Exploration and Capital Engineering
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and Capital is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Capital Engineering Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Engineering 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 Capital Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Engineering has no effect on the direction of PTT Exploration i.e., PTT Exploration and Capital Engineering go up and down completely randomly.
Pair Corralation between PTT Exploration and Capital Engineering
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 4.3 times more return on investment than Capital Engineering. However, PTT Exploration is 4.3 times more volatile than Capital Engineering Network. It trades about 0.03 of its potential returns per unit of risk. Capital Engineering Network is currently generating about -0.06 per unit of risk. If you would invest 12,550 in PTT Exploration and on August 30, 2024 and sell it today you would earn a total of 100.00 from holding PTT Exploration and or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. Capital Engineering Network
Performance |
| Timeline |
| PTT Exploration |
| Capital Engineering |
PTT Exploration and Capital Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Capital Engineering
The main advantage of trading using opposite PTT Exploration and Capital Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Capital Engineering 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 Capital Engineering will offset losses from the drop in Capital Engineering'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 |
| Capital Engineering vs. 2S Metal Public | Capital Engineering vs. AAPICO Hitech Public | Capital Engineering vs. AJ Plast 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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