Correlation Between PTT Public and International Research
Can any of the company-specific risk be diversified away by investing in both PTT Public and International Research 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 Public and International Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and International Research, you can compare the effects of market volatilities on PTT Public and International Research 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 Public with a short position of International Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and International Research.
Diversification Opportunities for PTT Public and International Research
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and International is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and International Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Research and PTT Public 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 Public are associated (or correlated) with International Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Research has no effect on the direction of PTT Public i.e., PTT Public and International Research go up and down completely randomly.
Pair Corralation between PTT Public and International Research
Assuming the 90 days trading horizon PTT Public is expected to generate 0.67 times more return on investment than International Research. However, PTT Public is 1.48 times less risky than International Research. It trades about -0.07 of its potential returns per unit of risk. International Research is currently generating about -0.15 per unit of risk. If you would invest 3,325 in PTT Public on September 16, 2024 and sell it today you would lose (150.00) from holding PTT Public or give up 4.51% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
PTT Public vs. International Research
Performance |
Timeline |
PTT Public |
International Research |
PTT Public and International Research Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PTT Public and International Research
The main advantage of trading using opposite PTT Public and International Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, International Research 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 International Research will offset losses from the drop in International Research's long position.PTT Public vs. Bangchak Public | PTT Public vs. IRPC Public | PTT Public vs. PTT Exploration and | PTT Public vs. PTG Energy PCL |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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