Correlation Between Gladstone Investment and PTT Global
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and PTT Global 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 Gladstone Investment and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and PTT Global Chemical, you can compare the effects of market volatilities on Gladstone Investment and PTT Global 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 Gladstone Investment with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and PTT Global.
Diversification Opportunities for Gladstone Investment and PTT Global
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gladstone and PTT is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and PTT Global Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Global Chemical and Gladstone Investment 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 Gladstone Investment are associated (or correlated) with PTT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Global Chemical has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and PTT Global go up and down completely randomly.
Pair Corralation between Gladstone Investment and PTT Global
Assuming the 90 days horizon Gladstone Investment is expected to generate 6.96 times less return on investment than PTT Global. But when comparing it to its historical volatility, Gladstone Investment is 11.63 times less risky than PTT Global. It trades about 0.06 of its potential returns per unit of risk. PTT Global Chemical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 100.00 in PTT Global Chemical on August 31, 2024 and sell it today you would lose (37.00) from holding PTT Global Chemical or give up 37.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. PTT Global Chemical
Performance |
| Timeline |
| Gladstone Investment |
| PTT Global Chemical |
Gladstone Investment and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and PTT Global
The main advantage of trading using opposite Gladstone Investment and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, PTT Global 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 PTT Global will offset losses from the drop in PTT Global's long position.| Gladstone Investment vs. QUEEN S ROAD | Gladstone Investment vs. Air Transport Services | Gladstone Investment vs. Gold Road Resources | Gladstone Investment vs. GOLD ROAD RES |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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