Correlation Between Gulf Energy and PTT Public

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

By analyzing existing cross correlation between Gulf Energy Development and PTT Public, you can compare the effects of market volatilities on Gulf Energy and PTT Public 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 Gulf Energy with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gulf Energy and PTT Public.

Diversification Opportunities for Gulf Energy and PTT Public

0.0

Correlation Coefficient

Gulf Energy  PTT Public

Pay attention - limited upside

The 3 months correlation between Gulf and PTT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gulf Energy Development and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Gulf Energy 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 Gulf Energy Development are associated (or correlated) with PTT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Public has no effect on the direction of Gulf Energy i.e., Gulf Energy and PTT Public go up and down completely randomly.

Pair Corralation between Gulf Energy and PTT Public

Assuming the 90 days trading horizon Gulf Energy Development is expected to under-perform the PTT Public. In addition to that, Gulf Energy is 1.41 times more volatile than PTT Public. It trades about -0.1 of its total potential returns per unit of risk. PTT Public is currently generating about 0.07 per unit of volatility. If you would invest  3,046  in PTT Public on December 28, 2024 and sell it today you would earn a total of  204.00  from holding PTT Public or generate 6.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.44%
Values	Daily Returns

Gulf Energy Development  vs.  PTT Public

Gulf Energy Development

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gulf Energy Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

PTT Public

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PTT Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, PTT Public may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Gulf Energy and PTT Public

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

The idea behind Gulf Energy Development and PTT Public 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.