Correlation Between Dcon Products and PTT Public
Can any of the company-specific risk be diversified away by investing in both Dcon Products 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 Dcon Products and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dcon Products Public and PTT Public, you can compare the effects of market volatilities on Dcon Products 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 Dcon Products with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dcon Products and PTT Public.
Diversification Opportunities for Dcon Products and PTT Public
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dcon and PTT is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dcon Products Public and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Dcon 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 Dcon Products 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 Dcon Products i.e., Dcon Products and PTT Public go up and down completely randomly.
Pair Corralation between Dcon Products and PTT Public
Assuming the 90 days trading horizon Dcon Products Public is expected to generate 64.41 times more return on investment than PTT Public. However, Dcon Products is 64.41 times more volatile than PTT Public. It trades about 0.06 of its potential returns per unit of risk. PTT Public is currently generating about 0.01 per unit of risk. If you would invest 41.00 in Dcon Products Public on August 25, 2024 and sell it today you would lose (11.00) from holding Dcon Products Public or give up 26.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dcon Products Public vs. PTT Public
Performance |
| Timeline |
| Dcon Products Public |
| PTT Public |
Dcon Products and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dcon Products and PTT Public
The main advantage of trading using opposite Dcon Products and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dcon Products 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.| Dcon Products vs. PTT Public | Dcon Products vs. PTT Exploration and | Dcon Products vs. The Siam Cement | Dcon Products 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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