Correlation Between PTT Exploration and Sri Trang
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Sri Trang 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 Sri Trang 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 Sri Trang Gloves, you can compare the effects of market volatilities on PTT Exploration and Sri Trang 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 Sri Trang. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Sri Trang.
Diversification Opportunities for PTT Exploration and Sri Trang
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PTT and Sri is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Sri Trang Gloves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sri Trang Gloves 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 Sri Trang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sri Trang Gloves has no effect on the direction of PTT Exploration i.e., PTT Exploration and Sri Trang go up and down completely randomly.
Pair Corralation between PTT Exploration and Sri Trang
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 0.6 times more return on investment than Sri Trang. However, PTT Exploration and is 1.67 times less risky than Sri Trang. It trades about 0.11 of its potential returns per unit of risk. Sri Trang Gloves is currently generating about -0.13 per unit of risk. If you would invest 12,500 in PTT Exploration and on August 28, 2024 and sell it today you would earn a total of 450.00 from holding PTT Exploration and or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. Sri Trang Gloves
Performance |
| Timeline |
| PTT Exploration |
| Sri Trang Gloves |
PTT Exploration and Sri Trang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Sri Trang
The main advantage of trading using opposite PTT Exploration and Sri Trang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Sri Trang 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 Sri Trang will offset losses from the drop in Sri Trang'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 |
| Sri Trang vs. NCL International Logistics | Sri Trang vs. The Erawan Group | Sri Trang vs. Airports of Thailand | Sri Trang vs. Eastern Technical Engineering |
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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