Correlation Between PTT Exploration and Wp Energy
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Wp Energy 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 Wp Energy 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 Wp Energy Public, you can compare the effects of market volatilities on PTT Exploration and Wp Energy 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 Wp Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Wp Energy.
Diversification Opportunities for PTT Exploration and Wp Energy
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTT and Wp Energy is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Wp Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wp Energy 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 Wp Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wp Energy Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and Wp Energy go up and down completely randomly.
Pair Corralation between PTT Exploration and Wp Energy
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 1.52 times more return on investment than Wp Energy. However, PTT Exploration is 1.52 times more volatile than Wp Energy Public. It trades about 0.02 of its potential returns per unit of risk. Wp Energy Public is currently generating about -0.13 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. Wp Energy Public
Performance |
| Timeline |
| PTT Exploration |
| Wp Energy Public |
PTT Exploration and Wp Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Wp Energy
The main advantage of trading using opposite PTT Exploration and Wp Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Wp Energy 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 Wp Energy will offset losses from the drop in Wp Energy's long position.| PTT Exploration vs. Bangchak Public | PTT Exploration vs. IRPC Public | PTT Exploration vs. PTG Energy PCL |
| Wp Energy vs. Bangchak Public | Wp Energy vs. IRPC Public | Wp Energy vs. PTT Exploration and | Wp Energy vs. PTG Energy PCL |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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