Correlation Between PTT Exploration and Beryl 8

Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Beryl 8 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 Beryl 8 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 Beryl 8 Plus, you can compare the effects of market volatilities on PTT Exploration and Beryl 8 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 Beryl 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Beryl 8.

Diversification Opportunities for PTT Exploration and Beryl 8

0.77

Correlation Coefficient

PTT Exploration  Beryl 8

Poor diversification

The 3 months correlation between PTT and Beryl is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Beryl 8 Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beryl 8 Plus 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 Beryl 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beryl 8 Plus has no effect on the direction of PTT Exploration i.e., PTT Exploration and Beryl 8 go up and down completely randomly.

Pair Corralation between PTT Exploration and Beryl 8

Assuming the 90 days trading horizon PTT Exploration and is expected to under-perform the Beryl 8. But the stock apears to be less risky and, when comparing its historical volatility, PTT Exploration and is 2.87 times less risky than Beryl 8. The stock trades about -0.48 of its potential returns per unit of risk. The Beryl 8 Plus is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  1,320  in Beryl 8 Plus on September 25, 2024 and sell it today you would lose (100.00) from holding Beryl 8 Plus or give up 7.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

PTT Exploration and  vs.  Beryl 8 Plus

PTT Exploration

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PTT Exploration and 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 fundamental drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Beryl 8 Plus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Beryl 8 Plus 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 basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with PTT Exploration and Beryl 8

The main advantage of trading using opposite PTT Exploration and Beryl 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Beryl 8 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 Beryl 8 will offset losses from the drop in Beryl 8's long position.

The idea behind PTT Exploration and and Beryl 8 Plus 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.