Correlation Between PTT Exploration and Wattana Karnpaet
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Wattana Karnpaet 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 Wattana Karnpaet 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 Wattana Karnpaet Public, you can compare the effects of market volatilities on PTT Exploration and Wattana Karnpaet 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 Wattana Karnpaet. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Wattana Karnpaet.
Diversification Opportunities for PTT Exploration and Wattana Karnpaet
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTT and Wattana is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Wattana Karnpaet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wattana Karnpaet 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 Wattana Karnpaet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wattana Karnpaet Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and Wattana Karnpaet go up and down completely randomly.
Pair Corralation between PTT Exploration and Wattana Karnpaet
Assuming the 90 days trading horizon PTT Exploration is expected to generate 3.02 times less return on investment than Wattana Karnpaet. But when comparing it to its historical volatility, PTT Exploration and is 1.58 times less risky than Wattana Karnpaet. It trades about 0.03 of its potential returns per unit of risk. Wattana Karnpaet Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,825 in Wattana Karnpaet Public on September 1, 2024 and sell it today you would earn a total of 175.00 from holding Wattana Karnpaet Public or generate 2.56% 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. Wattana Karnpaet Public
Performance |
| Timeline |
| PTT Exploration |
| Wattana Karnpaet Public |
PTT Exploration and Wattana Karnpaet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Wattana Karnpaet
The main advantage of trading using opposite PTT Exploration and Wattana Karnpaet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Wattana Karnpaet 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 Wattana Karnpaet will offset losses from the drop in Wattana Karnpaet'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 |
| Wattana Karnpaet vs. Nonthavej Hospital Public | Wattana Karnpaet vs. Thonburi Medical Centre | Wattana Karnpaet vs. Mahachai Hospital Public | Wattana Karnpaet vs. Aikchol Hospital 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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