Correlation Between PTT Exploration and Susco Public
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Susco Public 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 Susco Public 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 Susco Public, you can compare the effects of market volatilities on PTT Exploration and Susco Public 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 Susco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Susco Public.
Diversification Opportunities for PTT Exploration and Susco Public
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTT and Susco is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Susco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susco Public 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 Susco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susco Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and Susco Public go up and down completely randomly.
Pair Corralation between PTT Exploration and Susco Public
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 1.83 times more return on investment than Susco Public. However, PTT Exploration is 1.83 times more volatile than Susco Public. It trades about 0.02 of its potential returns per unit of risk. Susco Public is currently generating about -0.03 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. Susco Public
Performance |
| Timeline |
| PTT Exploration |
| Susco Public |
PTT Exploration and Susco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Susco Public
The main advantage of trading using opposite PTT Exploration and Susco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Susco Public 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 Susco Public will offset losses from the drop in Susco Public's long position.| PTT Exploration vs. Bangchak Public | PTT Exploration vs. IRPC Public | PTT Exploration vs. Star Petroleum Refining | PTT Exploration vs. PTG Energy PCL |
| Susco Public vs. Bangchak Public | Susco Public vs. IRPC Public | Susco Public vs. PTT Exploration and | Susco Public vs. Star Petroleum Refining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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