Correlation Between PTT Exploration and Make To
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Make To 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 Make To 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 Make To Win, you can compare the effects of market volatilities on PTT Exploration and Make To 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 Make To. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Make To.
Diversification Opportunities for PTT Exploration and Make To
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTT and Make is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Make To Win in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Make To Win 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 Make To. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Make To Win has no effect on the direction of PTT Exploration i.e., PTT Exploration and Make To go up and down completely randomly.
Pair Corralation between PTT Exploration and Make To
Assuming the 90 days trading horizon PTT Exploration and is expected to generate 0.34 times more return on investment than Make To. However, PTT Exploration and is 2.94 times less risky than Make To. It trades about -0.05 of its potential returns per unit of risk. Make To Win is currently generating about -0.04 per unit of risk. If you would invest 14,982 in PTT Exploration and on September 14, 2024 and sell it today you would lose (2,682) from holding PTT Exploration and or give up 17.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.62% |
Values | Daily Returns |
PTT Exploration and vs. Make To Win
Performance |
Timeline |
PTT Exploration |
Make To Win |
PTT Exploration and Make To Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PTT Exploration and Make To
The main advantage of trading using opposite PTT Exploration and Make To positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Make To 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 Make To will offset losses from the drop in Make To's long position.PTT Exploration vs. PTT Public | PTT Exploration vs. PTT Global Chemical | PTT Exploration vs. The Siam Cement | PTT Exploration vs. SCB X Public |
Make To vs. Delta Electronics Public | Make To vs. Delta Electronics Public | Make To vs. Airports of Thailand | Make To 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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