Correlation Between AP Public and PTG Energy
Can any of the company-specific risk be diversified away by investing in both AP Public 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 AP Public and PTG Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Public and PTG Energy Public, you can compare the effects of market volatilities on AP Public 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 AP Public with a short position of PTG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and PTG Energy.
Diversification Opportunities for AP Public and PTG Energy
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between AP Public and PTG is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and PTG Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTG Energy Public and AP 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 AP Public 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 Public has no effect on the direction of AP Public i.e., AP Public and PTG Energy go up and down completely randomly.
Pair Corralation between AP Public and PTG Energy
Assuming the 90 days horizon AP Public is expected to generate 0.34 times more return on investment than PTG Energy. However, AP Public is 2.98 times less risky than PTG Energy. It trades about -0.26 of its potential returns per unit of risk. PTG Energy Public is currently generating about -0.26 per unit of risk. If you would invest 880.00 in AP Public on September 24, 2024 and sell it today you would lose (70.00) from holding AP Public or give up 7.95% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 78.95% |
Values | Daily Returns |
AP Public vs. PTG Energy Public
Performance |
Timeline |
AP Public |
PTG Energy Public |
AP Public and PTG Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AP Public and PTG Energy
The main advantage of trading using opposite AP Public and PTG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public 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.AP Public vs. Bangkok Bank Public | AP Public vs. The Siam Cement | AP Public vs. PTT Public | AP Public vs. SCB X 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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