Correlation Between PTT Exploration and BG Container

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

Diversification Opportunities for PTT Exploration and BG Container

0.0

Correlation Coefficient

PTT Exploration  BG Container

Pay attention - limited upside

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

Pair Corralation between PTT Exploration and BG Container

If you would invest  11,412  in PTT Exploration and on December 29, 2024 and sell it today you would earn a total of  288.00  from holding PTT Exploration and or generate 2.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PTT Exploration and  vs.  BG Container Glass

PTT Exploration

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PTT Exploration and are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, PTT Exploration is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

BG Container Glass

Risk-Adjusted Performance

Very Weak

Over the last 90 days BG Container Glass has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, BG Container is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with PTT Exploration and BG Container

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

The idea behind PTT Exploration and and BG Container Glass 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.