Correlation Between PTT Exploration and CPN Commercial
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and CPN Commercial 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 CPN Commercial 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 CPN Commercial Growth, you can compare the effects of market volatilities on PTT Exploration and CPN Commercial 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 CPN Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and CPN Commercial.
Diversification Opportunities for PTT Exploration and CPN Commercial
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and CPN is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and CPN Commercial Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPN Commercial Growth 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 CPN Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPN Commercial Growth has no effect on the direction of PTT Exploration i.e., PTT Exploration and CPN Commercial go up and down completely randomly.
Pair Corralation between PTT Exploration and CPN Commercial
Assuming the 90 days trading horizon PTT Exploration and is expected to under-perform the CPN Commercial. In addition to that, PTT Exploration is 1.52 times more volatile than CPN Commercial Growth. It trades about -0.26 of its total potential returns per unit of risk. CPN Commercial Growth is currently generating about -0.18 per unit of volatility. If you would invest 625.00 in CPN Commercial Growth on December 1, 2024 and sell it today you would lose (25.00) from holding CPN Commercial Growth or give up 4.0% 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. CPN Commercial Growth
Performance |
| Timeline |
| PTT Exploration |
| CPN Commercial Growth |
PTT Exploration and CPN Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and CPN Commercial
The main advantage of trading using opposite PTT Exploration and CPN Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, CPN Commercial 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 CPN Commercial will offset losses from the drop in CPN Commercial'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 |
| CPN Commercial vs. Digital Telecommunications Infrastructure | CPN Commercial vs. Prime Office Leasehold | CPN Commercial vs. CPN Retail Growth | CPN Commercial vs. Dynasty Ceramic 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |