Correlation Between PTT Exploration and Permsin Steel
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Permsin Steel 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 Permsin Steel 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 Permsin Steel Works, you can compare the effects of market volatilities on PTT Exploration and Permsin Steel 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 Permsin Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Permsin Steel.
Diversification Opportunities for PTT Exploration and Permsin Steel
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between PTT and Permsin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Permsin Steel Works in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Permsin Steel Works 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 Permsin Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Permsin Steel Works has no effect on the direction of PTT Exploration i.e., PTT Exploration and Permsin Steel go up and down completely randomly.
Pair Corralation between PTT Exploration and Permsin Steel
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 1.17 times more return on investment than Permsin Steel. However, PTT Exploration is 1.17 times more volatile than Permsin Steel Works. It trades about 0.02 of its potential returns per unit of risk. Permsin Steel Works is currently generating about -0.56 per unit of risk. If you would invest 12,700 in PTT Exploration and on September 3, 2024 and sell it today you would earn a total of 50.00 from holding PTT Exploration and or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. Permsin Steel Works
Performance |
| Timeline |
| PTT Exploration |
| Permsin Steel Works |
PTT Exploration and Permsin Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Permsin Steel
The main advantage of trading using opposite PTT Exploration and Permsin Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Permsin Steel 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 Permsin Steel will offset losses from the drop in Permsin Steel's long position.| PTT Exploration vs. PTT Public | PTT Exploration vs. SCB X Public | PTT Exploration vs. The Siam Commercial | PTT Exploration vs. The Siam Cement |
| Permsin Steel vs. PTT Public | Permsin Steel vs. PTT Exploration and | Permsin Steel vs. The Siam Cement | Permsin Steel vs. CP ALL 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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