Correlation Between Air Products and PTT GLBL
Can any of the company-specific risk be diversified away by investing in both Air Products and PTT GLBL 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 Air Products and PTT GLBL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Products and and PTT GLBL CHEM NVDR , you can compare the effects of market volatilities on Air Products and PTT GLBL 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 Air Products with a short position of PTT GLBL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and PTT GLBL.
Diversification Opportunities for Air Products and PTT GLBL
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Air and PTT is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and and PTT GLBL CHEM NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT GLBL CHEM and Air Products 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 Air Products and are associated (or correlated) with PTT GLBL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT GLBL CHEM has no effect on the direction of Air Products i.e., Air Products and PTT GLBL go up and down completely randomly.
Pair Corralation between Air Products and PTT GLBL
Assuming the 90 days horizon Air Products and is expected to generate 0.74 times more return on investment than PTT GLBL. However, Air Products and is 1.35 times less risky than PTT GLBL. It trades about 0.3 of its potential returns per unit of risk. PTT GLBL CHEM NVDR is currently generating about -0.04 per unit of risk. If you would invest 28,280 in Air Products and on September 5, 2024 and sell it today you would earn a total of 3,670 from holding Air Products and or generate 12.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Products and vs. PTT GLBL CHEM NVDR
Performance |
| Timeline |
| Air Products |
| PTT GLBL CHEM |
Air Products and PTT GLBL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and PTT GLBL
The main advantage of trading using opposite Air Products and PTT GLBL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products position performs unexpectedly, PTT GLBL 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 GLBL will offset losses from the drop in PTT GLBL's long position.| Air Products vs. AIR LIQUIDE ADR | Air Products vs. BASF SE | Air Products vs. BASF SE | Air Products vs. BASF SE |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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