Correlation Between PTT Exploration and Intouch Holdings

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

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

Diversification Opportunities for PTT Exploration and Intouch Holdings

0.0

Correlation Coefficient

PTT Exploration  Intouch Holdings

Pay attention - limited upside

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

Pair Corralation between PTT Exploration and Intouch Holdings

Assuming the 90 days trading horizon PTT Exploration and is expected to under-perform the Intouch Holdings. In addition to that, PTT Exploration is 2.24 times more volatile than Intouch Holdings Public. It trades about -0.22 of its total potential returns per unit of risk. Intouch Holdings Public is currently generating about -0.27 per unit of volatility. If you would invest  10,500  in Intouch Holdings Public on September 3, 2024 and sell it today you would lose (1,000.00) from holding Intouch Holdings Public or give up 9.52% of portfolio value over 90 days.

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

PTT Exploration and  vs.  Intouch Holdings Public

PTT Exploration

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PTT Exploration and are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, PTT Exploration reported solid returns over the last few months and may actually be approaching a breakup point.

Intouch Holdings Public

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intouch Holdings Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Intouch Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PTT Exploration and Intouch Holdings

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

The idea behind PTT Exploration and and Intouch Holdings 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.