Correlation Between PTT Exploration and Itthirit Nice
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Itthirit Nice 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 Itthirit Nice 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 Itthirit Nice Corp, you can compare the effects of market volatilities on PTT Exploration and Itthirit Nice 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 Itthirit Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Itthirit Nice.
Diversification Opportunities for PTT Exploration and Itthirit Nice
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTT and Itthirit is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Itthirit Nice Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itthirit Nice Corp 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 Itthirit Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itthirit Nice Corp has no effect on the direction of PTT Exploration i.e., PTT Exploration and Itthirit Nice go up and down completely randomly.
Pair Corralation between PTT Exploration and Itthirit Nice
Assuming the 90 days trading horizon PTT Exploration and is expected to under-perform the Itthirit Nice. But the stock apears to be less risky and, when comparing its historical volatility, PTT Exploration and is 48.91 times less risky than Itthirit Nice. The stock trades about -0.04 of its potential returns per unit of risk. The Itthirit Nice Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 152.00 in Itthirit Nice Corp on September 20, 2024 and sell it today you would earn a total of 17.00 from holding Itthirit Nice Corp or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. Itthirit Nice Corp
Performance |
| Timeline |
| PTT Exploration |
| Itthirit Nice Corp |
PTT Exploration and Itthirit Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Itthirit Nice
The main advantage of trading using opposite PTT Exploration and Itthirit Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Itthirit Nice 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 Itthirit Nice will offset losses from the drop in Itthirit Nice's long position.| PTT Exploration vs. Bangchak Public | PTT Exploration vs. IRPC Public | PTT Exploration vs. PTG Energy PCL |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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