Correlation Between PTT Exploration and Origin Property
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Origin Property 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 Origin Property 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 Origin Property PCL, you can compare the effects of market volatilities on PTT Exploration and Origin Property 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 Origin Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Origin Property.
Diversification Opportunities for PTT Exploration and Origin Property
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTT and Origin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Origin Property PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Property PCL 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 Origin Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Property PCL has no effect on the direction of PTT Exploration i.e., PTT Exploration and Origin Property go up and down completely randomly.
Pair Corralation between PTT Exploration and Origin Property
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 1.2 times more return on investment than Origin Property. However, PTT Exploration is 1.2 times more volatile than Origin Property PCL. It trades about 0.02 of its potential returns per unit of risk. Origin Property PCL is currently generating about -0.29 per unit of risk. If you would invest 12,450 in PTT Exploration and on September 13, 2024 and sell it today you would earn a total of 50.00 from holding PTT Exploration and or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
PTT Exploration and vs. Origin Property PCL
Performance |
| Timeline |
| PTT Exploration |
| Origin Property PCL |
PTT Exploration and Origin Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Origin Property
The main advantage of trading using opposite PTT Exploration and Origin Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Origin Property 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 Origin Property will offset losses from the drop in Origin Property's long position.| PTT Exploration vs. Bangchak Public | PTT Exploration vs. IRPC Public | PTT Exploration vs. PTG Energy PCL |
| Origin Property vs. AP Public | Origin Property vs. Land and Houses | Origin Property vs. WHA Public | Origin Property vs. Quality Houses 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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