Correlation Between PTT Exploration and Krungdhep Sophon
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Krungdhep Sophon 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 Krungdhep Sophon 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 Krungdhep Sophon Public, you can compare the effects of market volatilities on PTT Exploration and Krungdhep Sophon 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 Krungdhep Sophon. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Krungdhep Sophon.
Diversification Opportunities for PTT Exploration and Krungdhep Sophon
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTT and Krungdhep is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Krungdhep Sophon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krungdhep Sophon 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 Krungdhep Sophon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krungdhep Sophon Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and Krungdhep Sophon go up and down completely randomly.
Pair Corralation between PTT Exploration and Krungdhep Sophon
Assuming the 90 days trading horizon PTT Exploration and is expected to under-perform the Krungdhep Sophon. But the stock apears to be less risky and, when comparing its historical volatility, PTT Exploration and is 37.37 times less risky than Krungdhep Sophon. The stock trades about -0.01 of its potential returns per unit of risk. The Krungdhep Sophon Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 25,125 in Krungdhep Sophon Public on August 31, 2024 and sell it today you would earn a total of 3,675 from holding Krungdhep Sophon Public or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
PTT Exploration and vs. Krungdhep Sophon Public
Performance |
| Timeline |
| PTT Exploration |
| Krungdhep Sophon Public |
PTT Exploration and Krungdhep Sophon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Krungdhep Sophon
The main advantage of trading using opposite PTT Exploration and Krungdhep Sophon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Krungdhep Sophon 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 Krungdhep Sophon will offset losses from the drop in Krungdhep Sophon'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 |
| Krungdhep Sophon vs. Thonburi Medical Centre | Krungdhep Sophon vs. Kang Yong Electric | Krungdhep Sophon vs. Jack Chia Industries | Krungdhep Sophon vs. Laguna Resorts Hotels |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |