Correlation Between TITAN MACHINERY and PTT Global
Can any of the company-specific risk be diversified away by investing in both TITAN MACHINERY 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 TITAN MACHINERY and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TITAN MACHINERY and PTT Global Chemical, you can compare the effects of market volatilities on TITAN MACHINERY 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 TITAN MACHINERY with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of TITAN MACHINERY and PTT Global.
Diversification Opportunities for TITAN MACHINERY and PTT Global
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TITAN and PTT is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding TITAN MACHINERY 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 TITAN MACHINERY 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 TITAN MACHINERY 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 TITAN MACHINERY i.e., TITAN MACHINERY and PTT Global go up and down completely randomly.
Pair Corralation between TITAN MACHINERY and PTT Global
Assuming the 90 days trading horizon TITAN MACHINERY is expected to under-perform the PTT Global. But the stock apears to be less risky and, when comparing its historical volatility, TITAN MACHINERY is 7.75 times less risky than PTT Global. The stock trades about -0.04 of its potential returns per unit of risk. The PTT Global Chemical is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 98.00 in PTT Global Chemical on September 3, 2024 and sell it today you would lose (34.00) from holding PTT Global Chemical or give up 34.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TITAN MACHINERY vs. PTT Global Chemical
Performance |
| Timeline |
| TITAN MACHINERY |
| PTT Global Chemical |
TITAN MACHINERY and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TITAN MACHINERY and PTT Global
The main advantage of trading using opposite TITAN MACHINERY and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TITAN MACHINERY 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.| TITAN MACHINERY vs. COMPUTERSHARE | TITAN MACHINERY vs. INTERSHOP Communications Aktiengesellschaft | TITAN MACHINERY vs. Charter Communications | TITAN MACHINERY vs. Citic Telecom International |
| PTT Global vs. Tianjin Capital Environmental | PTT Global vs. MITSUBISHI STEEL MFG | PTT Global vs. Playtech plc | PTT Global vs. Khiron Life Sciences |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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