Correlation Between Super Energy and PTG Energy
Can any of the company-specific risk be diversified away by investing in both Super Energy 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 Super Energy and PTG Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Energy and PTG Energy PCL, you can compare the effects of market volatilities on Super Energy 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 Super Energy with a short position of PTG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Energy and PTG Energy.
Diversification Opportunities for Super Energy and PTG Energy
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Super and PTG is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Super Energy 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 Super Energy 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 Super Energy 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 Super Energy i.e., Super Energy and PTG Energy go up and down completely randomly.
Pair Corralation between Super Energy and PTG Energy
Assuming the 90 days trading horizon Super Energy is expected to generate 1.29 times more return on investment than PTG Energy. However, Super Energy is 1.29 times more volatile than PTG Energy PCL. It trades about -0.06 of its potential returns per unit of risk. PTG Energy PCL is currently generating about -0.2 per unit of risk. If you would invest 28.00 in Super Energy on September 4, 2024 and sell it today you would lose (1.00) from holding Super Energy or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Super Energy vs. PTG Energy PCL
Performance |
| Timeline |
| Super Energy |
| PTG Energy PCL |
Super Energy and PTG Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Energy and PTG Energy
The main advantage of trading using opposite Super Energy and PTG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Energy 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.| Super Energy vs. Bangchak Public | Super Energy vs. Gulf Energy Development | Super Energy vs. Bangkok Expressway and | Super Energy vs. BGrimm Power Public |
| PTG Energy vs. Central Pattana Public | PTG Energy vs. CP ALL Public | PTG Energy vs. Bangkok Dusit Medical | PTG Energy vs. Airports of Thailand |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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