Correlation Between MOBILE FACTORY and PTT Global
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY 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 MOBILE FACTORY and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and PTT Global Chemical, you can compare the effects of market volatilities on MOBILE FACTORY 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 MOBILE FACTORY with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and PTT Global.
Diversification Opportunities for MOBILE FACTORY and PTT Global
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MOBILE and PTT is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC 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 MOBILE FACTORY 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 MOBILE FACTORY INC 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 MOBILE FACTORY i.e., MOBILE FACTORY and PTT Global go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and PTT Global
Assuming the 90 days horizon MOBILE FACTORY INC is expected to generate 0.63 times more return on investment than PTT Global. However, MOBILE FACTORY INC is 1.59 times less risky than PTT Global. It trades about 0.15 of its potential returns per unit of risk. PTT Global Chemical is currently generating about 0.01 per unit of risk. If you would invest 404.00 in MOBILE FACTORY INC on November 1, 2024 and sell it today you would earn a total of 181.00 from holding MOBILE FACTORY INC or generate 44.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. PTT Global Chemical
Performance |
| Timeline |
| MOBILE FACTORY INC |
| PTT Global Chemical |
MOBILE FACTORY and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and PTT Global
The main advantage of trading using opposite MOBILE FACTORY and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY 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.| MOBILE FACTORY vs. TELECOM ITALIA | MOBILE FACTORY vs. IMAGIN MEDICAL INC | MOBILE FACTORY vs. Japan Medical Dynamic | MOBILE FACTORY vs. Inspire Medical Systems |
| PTT Global vs. EEDUCATION ALBERT AB | PTT Global vs. Perdoceo Education | PTT Global vs. EMBARK EDUCATION LTD | PTT Global vs. IDP EDUCATION LTD |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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