Correlation Between PTT Global and EMBARK EDUCATION

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

By analyzing existing cross correlation between PTT Global Chemical and EMBARK EDUCATION LTD, you can compare the effects of market volatilities on PTT Global and EMBARK EDUCATION 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 Global with a short position of EMBARK EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and EMBARK EDUCATION.

Diversification Opportunities for PTT Global and EMBARK EDUCATION

0.22

Correlation Coefficient

PTT Global  EMBARK EDUCATION

Modest diversification

The 3 months correlation between PTT and EMBARK is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and EMBARK EDUCATION LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMBARK EDUCATION LTD and PTT Global 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 Global Chemical are associated (or correlated) with EMBARK EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMBARK EDUCATION LTD has no effect on the direction of PTT Global i.e., PTT Global and EMBARK EDUCATION go up and down completely randomly.

Pair Corralation between PTT Global and EMBARK EDUCATION

Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the EMBARK EDUCATION. In addition to that, PTT Global is 5.61 times more volatile than EMBARK EDUCATION LTD. It trades about -0.15 of its total potential returns per unit of risk. EMBARK EDUCATION LTD is currently generating about 0.0 per unit of volatility. If you would invest  31.00  in EMBARK EDUCATION LTD on December 29, 2024 and sell it today you would earn a total of  0.00  from holding EMBARK EDUCATION LTD or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

PTT Global Chemical  vs.  EMBARK EDUCATION LTD

PTT Global Chemical

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTT Global Chemical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

EMBARK EDUCATION LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days EMBARK EDUCATION LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EMBARK EDUCATION is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PTT Global and EMBARK EDUCATION

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

The idea behind PTT Global Chemical and EMBARK EDUCATION LTD 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.