Correlation Between PTT Public and Super Energy

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

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

Diversification Opportunities for PTT Public and Super Energy

-0.05

Correlation Coefficient

PTT Public  Super Energy

Good diversification

The 3 months correlation between PTT and Super is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Super Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Energy and PTT 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 PTT Public are associated (or correlated) with Super Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Energy has no effect on the direction of PTT Public i.e., PTT Public and Super Energy go up and down completely randomly.

Pair Corralation between PTT Public and Super Energy

Assuming the 90 days trading horizon PTT Public is expected to generate 0.09 times more return on investment than Super Energy. However, PTT Public is 11.46 times less risky than Super Energy. It trades about 0.01 of its potential returns per unit of risk. Super Energy is currently generating about -0.24 per unit of risk. If you would invest  3,200  in PTT Public on October 9, 2024 and sell it today you would earn a total of  0.00  from holding PTT Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PTT Public  vs.  Super Energy

PTT Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PTT Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, PTT Public is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Super Energy

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Super Energy are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Super Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PTT Public and Super Energy

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

The idea behind PTT Public and Super Energy 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.