Correlation Between PTT Global and PTG Energy
Can any of the company-specific risk be diversified away by investing in both PTT Global and PTG 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 Global and PTG Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Global Chemical and PTG Energy PCL, you can compare the effects of market volatilities on PTT Global and PTG 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 Global with a short position of PTG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and PTG Energy.
Diversification Opportunities for PTT Global and PTG Energy
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and PTG is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and PTG Energy PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTG Energy PCL and PTT Global 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 Global Chemical are associated (or correlated) with PTG Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTG Energy PCL has no effect on the direction of PTT Global i.e., PTT Global and PTG Energy go up and down completely randomly.
Pair Corralation between PTT Global and PTG Energy
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 1.23 times more return on investment than PTG Energy. However, PTT Global is 1.23 times more volatile than PTG Energy PCL. It trades about 0.03 of its potential returns per unit of risk. PTG Energy PCL is currently generating about -0.22 per unit of risk. If you would invest 2,525 in PTT Global Chemical on August 29, 2024 and sell it today you would earn a total of 25.00 from holding PTT Global Chemical or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. PTG Energy PCL
Performance |
| Timeline |
| PTT Global Chemical |
| PTG Energy PCL |
PTT Global and PTG Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and PTG Energy
The main advantage of trading using opposite PTT Global and PTG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, PTG 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 PTG Energy will offset losses from the drop in PTG Energy's long position.| PTT Global vs. PTT Public | PTT Global vs. PTT Exploration and | PTT Global vs. The Siam Cement | PTT Global vs. CP ALL Public |
| PTG Energy vs. SCB X Public | PTG Energy vs. Kasikornbank Public | PTG Energy vs. PTT Public | PTG Energy 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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