Correlation Between Bank of New York Mellon and PTT Global
Can any of the company-specific risk be diversified away by investing in both Bank of New York Mellon 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 Bank of New York Mellon and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and PTT Global Chemical, you can compare the effects of market volatilities on Bank of New York Mellon 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 Bank of New York Mellon with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York Mellon and PTT Global.
Diversification Opportunities for Bank of New York Mellon and PTT Global
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and PTT is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of 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 Bank of New York Mellon 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 The Bank of 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 Bank of New York Mellon i.e., Bank of New York Mellon and PTT Global go up and down completely randomly.
Pair Corralation between Bank of New York Mellon and PTT Global
Assuming the 90 days horizon Bank of New York Mellon is expected to generate 4.17 times less return on investment than PTT Global. But when comparing it to its historical volatility, The Bank of is 12.57 times less risky than PTT Global. It trades about 0.09 of its potential returns per unit of risk. PTT Global Chemical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 107.00 in PTT Global Chemical on October 19, 2024 and sell it today you would lose (49.00) from holding PTT Global Chemical or give up 45.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Bank of vs. PTT Global Chemical
Performance |
| Timeline |
| Bank of New York Mellon |
| PTT Global Chemical |
Bank of New York Mellon and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York Mellon and PTT Global
The main advantage of trading using opposite Bank of New York Mellon and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York Mellon 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.| Bank of New York Mellon vs. JD SPORTS FASH | Bank of New York Mellon vs. Forsys Metals Corp | Bank of New York Mellon vs. Ribbon Communications | Bank of New York Mellon vs. SOCKET MOBILE NEW |
| PTT Global vs. AOYAMA TRADING | PTT Global vs. ECHO INVESTMENT ZY | PTT Global vs. Goodyear Tire Rubber | PTT Global vs. Treasury Wine Estates |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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