Correlation Between Air Transport and PTT Global
Can any of the company-specific risk be diversified away by investing in both Air Transport 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 Air Transport and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Transport Services and PTT Global Chemical, you can compare the effects of market volatilities on Air Transport 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 Air Transport with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and PTT Global.
Diversification Opportunities for Air Transport and PTT Global
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and PTT is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services 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 Air Transport 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 Transport Services 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 Air Transport i.e., Air Transport and PTT Global go up and down completely randomly.
Pair Corralation between Air Transport and PTT Global
Assuming the 90 days horizon Air Transport Services is expected to generate 0.25 times more return on investment than PTT Global. However, Air Transport Services is 4.02 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 -0.33 per unit of risk. If you would invest 2,120 in Air Transport Services on November 4, 2024 and sell it today you would earn a total of 40.00 from holding Air Transport Services or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Air Transport Services vs. PTT Global Chemical
Performance |
| Timeline |
| Air Transport Services |
| PTT Global Chemical |
Air Transport and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and PTT Global
The main advantage of trading using opposite Air Transport and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport 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.| Air Transport vs. NEWELL RUBBERMAID | Air Transport vs. Summit Materials | Air Transport vs. Plastic Omnium | Air Transport vs. BW OFFSHORE LTD |
| PTT Global vs. SOGECLAIR SA INH | PTT Global vs. Delta Air Lines | PTT Global vs. ETFS Coffee ETC | PTT Global vs. Pentair plc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |