Correlation Between Aikchol Hospital and PTT Global
Can any of the company-specific risk be diversified away by investing in both Aikchol Hospital 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 Aikchol Hospital and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aikchol Hospital Public and PTT Global Chemical, you can compare the effects of market volatilities on Aikchol Hospital 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 Aikchol Hospital with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aikchol Hospital and PTT Global.
Diversification Opportunities for Aikchol Hospital and PTT Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aikchol and PTT is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aikchol Hospital Public 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 Aikchol Hospital 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 Aikchol Hospital Public 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 Aikchol Hospital i.e., Aikchol Hospital and PTT Global go up and down completely randomly.
Pair Corralation between Aikchol Hospital and PTT Global
Assuming the 90 days trading horizon Aikchol Hospital Public is expected to generate 1.0 times more return on investment than PTT Global. However, Aikchol Hospital Public is 1.0 times less risky than PTT Global. It trades about 0.07 of its potential returns per unit of risk. PTT Global Chemical is currently generating about 0.07 per unit of risk. If you would invest 1,736 in Aikchol Hospital Public on September 3, 2024 and sell it today you would lose (186.00) from holding Aikchol Hospital Public or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aikchol Hospital Public vs. PTT Global Chemical
Performance |
| Timeline |
| Aikchol Hospital Public |
| PTT Global Chemical |
Aikchol Hospital and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aikchol Hospital and PTT Global
The main advantage of trading using opposite Aikchol Hospital and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aikchol Hospital 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.| Aikchol Hospital vs. AP Public | Aikchol Hospital vs. Bumrungrad Hospital Public | Aikchol Hospital vs. Advanced Information Technology | Aikchol Hospital vs. AJ Plast Public |
| PTT Global vs. PTT Public | PTT Global vs. PTT Exploration and | PTT Global vs. The Siam Cement | PTT Global vs. CP ALL Public |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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