Correlation Between PTT Exploration and Plus Tech
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Plus Tech 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 Plus Tech 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 Plus Tech Innovation, you can compare the effects of market volatilities on PTT Exploration and Plus Tech 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 Plus Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Plus Tech.
Diversification Opportunities for PTT Exploration and Plus Tech
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PTT and Plus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Plus Tech Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plus Tech Innovation 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 Plus Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plus Tech Innovation has no effect on the direction of PTT Exploration i.e., PTT Exploration and Plus Tech go up and down completely randomly.
Pair Corralation between PTT Exploration and Plus Tech
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 0.18 times more return on investment than Plus Tech. However, PTT Exploration and is 5.52 times less risky than Plus Tech. It trades about 0.06 of its potential returns per unit of risk. Plus Tech Innovation is currently generating about -0.21 per unit of risk. If you would invest 12,550 in PTT Exploration and on August 24, 2024 and sell it today you would earn a total of 200.00 from holding PTT Exploration and or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
PTT Exploration and vs. Plus Tech Innovation
Performance |
| Timeline |
| PTT Exploration |
| Plus Tech Innovation |
PTT Exploration and Plus Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Plus Tech
The main advantage of trading using opposite PTT Exploration and Plus Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Plus Tech 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 Plus Tech will offset losses from the drop in Plus Tech'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 |
| Plus Tech vs. Com7 PCL | Plus Tech vs. TKS Technologies Public | Plus Tech vs. Rajthanee Hospital Public | Plus Tech vs. The Erawan Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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