Correlation Between PTT Exploration and Thaicom Public
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Thaicom 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 Thaicom 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 Thaicom Public, you can compare the effects of market volatilities on PTT Exploration and Thaicom 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 Thaicom Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Thaicom Public.
Diversification Opportunities for PTT Exploration and Thaicom Public
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Thaicom is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Thaicom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaicom 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 Thaicom Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaicom Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and Thaicom Public go up and down completely randomly.
Pair Corralation between PTT Exploration and Thaicom Public
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 0.57 times more return on investment than Thaicom Public. However, PTT Exploration and is 1.76 times less risky than Thaicom Public. It trades about 0.08 of its potential returns per unit of risk. Thaicom Public is currently generating about -0.13 per unit of risk. If you would invest 12,400 in PTT Exploration and on August 31, 2024 and sell it today you would earn a total of 350.00 from holding PTT Exploration and or generate 2.82% 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. Thaicom Public
Performance |
| Timeline |
| PTT Exploration |
| Thaicom Public |
PTT Exploration and Thaicom Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Thaicom Public
The main advantage of trading using opposite PTT Exploration and Thaicom Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Thaicom 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 Thaicom Public will offset losses from the drop in Thaicom Public'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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