Correlation Between Crown Seal and PTT Public
Can any of the company-specific risk be diversified away by investing in both Crown Seal 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 Crown Seal and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crown Seal Public and PTT Public, you can compare the effects of market volatilities on Crown Seal 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 Crown Seal with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Seal and PTT Public.
Diversification Opportunities for Crown Seal and PTT Public
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crown and PTT is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Crown Seal Public and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Crown Seal 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 Crown Seal 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 Crown Seal i.e., Crown Seal and PTT Public go up and down completely randomly.
Pair Corralation between Crown Seal and PTT Public
Assuming the 90 days trading horizon Crown Seal Public is expected to generate 0.86 times more return on investment than PTT Public. However, Crown Seal Public is 1.16 times less risky than PTT Public. It trades about -0.03 of its potential returns per unit of risk. PTT Public is currently generating about -0.11 per unit of risk. If you would invest 4,650 in Crown Seal Public on September 13, 2024 and sell it today you would lose (25.00) from holding Crown Seal Public or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crown Seal Public vs. PTT Public
Performance |
| Timeline |
| Crown Seal Public |
| PTT Public |
Crown Seal and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Seal and PTT Public
The main advantage of trading using opposite Crown Seal and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Seal 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.| Crown Seal vs. Turnkey Communication Services | Crown Seal vs. Peerapat Technology Public | Crown Seal vs. Copperwired Public | Crown Seal vs. Somboon Advance Technology |
| PTT Public vs. IRPC Public | PTT Public vs. PTT Oil and | PTT Public vs. Power Solution Technologies | PTT Public vs. Star Petroleum Refining |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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