Correlation Between PTT Exploration and Ligand Pharms

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

Diversification Opportunities for PTT Exploration and Ligand Pharms

0.0

Correlation Coefficient

PTT Exploration  Ligand Pharms

Pay attention - limited upside

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

Pair Corralation between PTT Exploration and Ligand Pharms

If you would invest  0.19  in Ligand Pharms Glucagon on February 4, 2024 and sell it today you would earn a total of  0.77  from holding Ligand Pharms Glucagon or generate 405.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	18.18%
Values	Daily Returns

PTT Exploration and  vs.  Ligand Pharms Glucagon

PTT Exploration

Risk-Adjusted Performance

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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 nearly stable essential indicators, PTT Exploration is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Ligand Pharms Glucagon

Risk-Adjusted Performance

0 of 100

Very Strong

Over the last 90 days Ligand Pharms Glucagon has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Ligand Pharms showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PTT Exploration and Ligand Pharms

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

The idea behind PTT Exploration and and Ligand Pharms Glucagon 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.