Correlation Between PTT Exploration and Firetrade Engineering
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Firetrade 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 Firetrade 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 Firetrade Engineering Public, you can compare the effects of market volatilities on PTT Exploration and Firetrade 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 Firetrade Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Firetrade Engineering.
Diversification Opportunities for PTT Exploration and Firetrade Engineering
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Firetrade is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Firetrade Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firetrade 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 Firetrade Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firetrade Engineering has no effect on the direction of PTT Exploration i.e., PTT Exploration and Firetrade Engineering go up and down completely randomly.
Pair Corralation between PTT Exploration and Firetrade Engineering
Assuming the 90 days trading horizon PTT Exploration is expected to generate 5.41 times less return on investment than Firetrade Engineering. In addition to that, PTT Exploration is 1.2 times more volatile than Firetrade Engineering Public. It trades about 0.03 of its total potential returns per unit of risk. Firetrade Engineering Public is currently generating about 0.22 per unit of volatility. If you would invest 145.00 in Firetrade Engineering Public on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Firetrade Engineering Public or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. Firetrade Engineering Public
Performance |
| Timeline |
| PTT Exploration |
| Firetrade Engineering |
PTT Exploration and Firetrade Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Firetrade Engineering
The main advantage of trading using opposite PTT Exploration and Firetrade Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Firetrade 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 Firetrade Engineering will offset losses from the drop in Firetrade 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 |
| Firetrade Engineering vs. Tata Steel Public | Firetrade Engineering vs. TTCL Public | Firetrade Engineering vs. Thaifoods Group Public | Firetrade Engineering vs. TMT Steel 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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