Correlation Between PTT Exploration and Infraset Public

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

Diversification Opportunities for PTT Exploration and Infraset Public

-0.18

Correlation Coefficient

PTT Exploration  Infraset Public

Good diversification

The 3 months correlation between PTT and Infraset is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Infraset Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infraset 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 Infraset Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infraset Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and Infraset Public go up and down completely randomly.

Pair Corralation between PTT Exploration and Infraset Public

Assuming the 90 days trading horizon PTT Exploration and is expected to under-perform the Infraset Public. But the stock apears to be less risky and, when comparing its historical volatility, PTT Exploration and is 48.45 times less risky than Infraset Public. The stock trades about -0.04 of its potential returns per unit of risk. The Infraset Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  257.00  in Infraset Public on October 22, 2024 and sell it today you would earn a total of  25.00  from holding Infraset Public or generate 9.73% return on investment over 90 days.

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

PTT Exploration and  vs.  Infraset Public

PTT Exploration

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days PTT Exploration and has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Infraset Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with PTT Exploration and Infraset Public

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

The idea behind PTT Exploration and and Infraset 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.