Correlation Between PTT Public and Eternal Energy
Can any of the company-specific risk be diversified away by investing in both PTT Public and Eternal 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 Eternal 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 Eternal Energy Public, you can compare the effects of market volatilities on PTT Public and Eternal 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 Eternal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Eternal Energy.
Diversification Opportunities for PTT Public and Eternal Energy
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTT and Eternal is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Eternal Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eternal Energy Public 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 Eternal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eternal Energy Public has no effect on the direction of PTT Public i.e., PTT Public and Eternal Energy go up and down completely randomly.
Pair Corralation between PTT Public and Eternal Energy
Assuming the 90 days trading horizon PTT Public is expected to under-perform the Eternal Energy. But the stock apears to be less risky and, when comparing its historical volatility, PTT Public is 15.68 times less risky than Eternal Energy. The stock trades about -0.37 of its potential returns per unit of risk. The Eternal Energy Public is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Eternal Energy Public on September 24, 2024 and sell it today you would earn a total of 42.00 from holding Eternal Energy Public or generate 221.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PTT Public vs. Eternal Energy Public
Performance |
Timeline |
PTT Public |
Eternal Energy Public |
PTT Public and Eternal Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PTT Public and Eternal Energy
The main advantage of trading using opposite PTT Public and Eternal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Eternal 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 Eternal Energy will offset losses from the drop in Eternal Energy's long position.The idea behind PTT Public and Eternal Energy 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.Eternal Energy vs. PTT Public | Eternal Energy vs. The Siam Cement | Eternal Energy vs. SCB X Public | Eternal Energy vs. Kasikornbank Public |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Transaction History View history of all your transactions and understand their impact on performance | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Stocks Directory Find actively traded stocks across global markets |