Correlation Between TROPHY GAMES and PTT OILRETBUS

Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and PTT OILRETBUS 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 TROPHY GAMES and PTT OILRETBUS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TROPHY GAMES DEV and PTT OILRETBUS NVDR 10, you can compare the effects of market volatilities on TROPHY GAMES and PTT OILRETBUS 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 TROPHY GAMES with a short position of PTT OILRETBUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and PTT OILRETBUS.

Diversification Opportunities for TROPHY GAMES and PTT OILRETBUS

0.67

Correlation Coefficient

TROPHY GAMES  PTT OILRETBUS

Poor diversification

The 3 months correlation between TROPHY and PTT is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and PTT OILRETBUS NVDR 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OILRETBUS NVDR and TROPHY GAMES 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 TROPHY GAMES DEV are associated (or correlated) with PTT OILRETBUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OILRETBUS NVDR has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and PTT OILRETBUS go up and down completely randomly.

Pair Corralation between TROPHY GAMES and PTT OILRETBUS

Assuming the 90 days horizon TROPHY GAMES DEV is expected to under-perform the PTT OILRETBUS. In addition to that, TROPHY GAMES is 1.14 times more volatile than PTT OILRETBUS NVDR 10. It trades about -0.05 of its total potential returns per unit of risk. PTT OILRETBUS NVDR 10 is currently generating about 0.01 per unit of volatility. If you would invest  37.00  in PTT OILRETBUS NVDR 10 on September 18, 2024 and sell it today you would earn a total of  0.00  from holding PTT OILRETBUS NVDR 10 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

TROPHY GAMES DEV  vs.  PTT OILRETBUS NVDR 10

TROPHY GAMES DEV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TROPHY GAMES DEV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

PTT OILRETBUS NVDR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PTT OILRETBUS NVDR 10 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with TROPHY GAMES and PTT OILRETBUS

The main advantage of trading using opposite TROPHY GAMES and PTT OILRETBUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES position performs unexpectedly, PTT OILRETBUS 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 PTT OILRETBUS will offset losses from the drop in PTT OILRETBUS's long position.

The idea behind TROPHY GAMES DEV and PTT OILRETBUS NVDR 10 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.