Correlation Between PTT Exploration and Betagro PCL
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Betagro PCL 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 Betagro PCL 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 Betagro PCL, you can compare the effects of market volatilities on PTT Exploration and Betagro PCL 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 Betagro PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Betagro PCL.
Diversification Opportunities for PTT Exploration and Betagro PCL
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and Betagro is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Betagro PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betagro PCL 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 Betagro PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betagro PCL has no effect on the direction of PTT Exploration i.e., PTT Exploration and Betagro PCL go up and down completely randomly.
Pair Corralation between PTT Exploration and Betagro PCL
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 1.0 times more return on investment than Betagro PCL. However, PTT Exploration is 1.0 times more volatile than Betagro PCL. It trades about -0.16 of its potential returns per unit of risk. Betagro PCL is currently generating about -0.2 per unit of risk. If you would invest 13,750 in PTT Exploration and on September 26, 2024 and sell it today you would lose (1,900) from holding PTT Exploration and or give up 13.82% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
PTT Exploration and vs. Betagro PCL
Performance |
Timeline |
PTT Exploration |
Betagro PCL |
PTT Exploration and Betagro PCL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PTT Exploration and Betagro PCL
The main advantage of trading using opposite PTT Exploration and Betagro PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Betagro PCL 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 Betagro PCL will offset losses from the drop in Betagro PCL's long position.PTT Exploration vs. PTT Public | PTT Exploration vs. The Siam Cement | PTT Exploration vs. SCB X Public | PTT Exploration vs. Kasikornbank 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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