Correlation Between Bangsaphan Barmill and PTT Public
Can any of the company-specific risk be diversified away by investing in both Bangsaphan Barmill and PTT Public 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 Bangsaphan Barmill and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangsaphan Barmill Public and PTT Public, you can compare the effects of market volatilities on Bangsaphan Barmill and PTT Public 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 Bangsaphan Barmill with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangsaphan Barmill and PTT Public.
Diversification Opportunities for Bangsaphan Barmill and PTT Public
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangsaphan and PTT is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bangsaphan Barmill Public and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Bangsaphan Barmill 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 Bangsaphan Barmill Public are associated (or correlated) with PTT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Public has no effect on the direction of Bangsaphan Barmill i.e., Bangsaphan Barmill and PTT Public go up and down completely randomly.
Pair Corralation between Bangsaphan Barmill and PTT Public
Assuming the 90 days trading horizon Bangsaphan Barmill Public is expected to generate 1.6 times more return on investment than PTT Public. However, Bangsaphan Barmill is 1.6 times more volatile than PTT Public. It trades about -0.03 of its potential returns per unit of risk. PTT Public is currently generating about -0.17 per unit of risk. If you would invest 73.00 in Bangsaphan Barmill Public on September 4, 2024 and sell it today you would lose (1.00) from holding Bangsaphan Barmill Public or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangsaphan Barmill Public vs. PTT Public
Performance |
| Timeline |
| Bangsaphan Barmill Public |
| PTT Public |
Bangsaphan Barmill and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangsaphan Barmill and PTT Public
The main advantage of trading using opposite Bangsaphan Barmill and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangsaphan Barmill position performs unexpectedly, PTT Public 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 Public will offset losses from the drop in PTT Public's long position.| Bangsaphan Barmill vs. PTT Public | Bangsaphan Barmill vs. PTT Exploration and | Bangsaphan Barmill vs. The Siam Cement | Bangsaphan Barmill vs. CP ALL Public |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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