Correlation Between PTT Exploration and S Pack
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and S Pack 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 S Pack 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 S Pack Print, you can compare the effects of market volatilities on PTT Exploration and S Pack 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 S Pack. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and S Pack.
Diversification Opportunities for PTT Exploration and S Pack
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between PTT and SPACK is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and S Pack Print in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Pack Print 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 S Pack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Pack Print has no effect on the direction of PTT Exploration i.e., PTT Exploration and S Pack go up and down completely randomly.
Pair Corralation between PTT Exploration and S Pack
Assuming the 90 days trading horizon PTT Exploration and is expected to under-perform the S Pack. But the stock apears to be less risky and, when comparing its historical volatility, PTT Exploration and is 31.37 times less risky than S Pack. The stock trades about -0.02 of its potential returns per unit of risk. The S Pack Print is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 390.00 in S Pack Print on August 26, 2024 and sell it today you would lose (210.00) from holding S Pack Print or give up 53.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. S Pack Print
Performance |
| Timeline |
| PTT Exploration |
| S Pack Print |
PTT Exploration and S Pack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and S Pack
The main advantage of trading using opposite PTT Exploration and S Pack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, S Pack 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 S Pack will offset losses from the drop in S Pack's long position.| PTT Exploration vs. PTT Oil and | PTT Exploration vs. Power Solution Technologies | PTT Exploration vs. Star Petroleum Refining | PTT Exploration vs. Prima Marine Public |
| S Pack vs. PTT Public | S Pack vs. PTT Exploration and | S Pack vs. CP ALL Public | S Pack vs. Kasikornbank 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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