Correlation Between DAIRY FARM and PTT Global
Can any of the company-specific risk be diversified away by investing in both DAIRY FARM 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 DAIRY FARM and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAIRY FARM INTL and PTT Global Chemical, you can compare the effects of market volatilities on DAIRY FARM 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 DAIRY FARM with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAIRY FARM and PTT Global.
Diversification Opportunities for DAIRY FARM and PTT Global
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAIRY and PTT is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding DAIRY FARM INTL 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 DAIRY FARM 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 DAIRY FARM INTL 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 DAIRY FARM i.e., DAIRY FARM and PTT Global go up and down completely randomly.
Pair Corralation between DAIRY FARM and PTT Global
Assuming the 90 days trading horizon DAIRY FARM INTL is expected to generate 0.26 times more return on investment than PTT Global. However, DAIRY FARM INTL is 3.79 times less risky than PTT Global. It trades about 0.01 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.05 per unit of risk. If you would invest 220.00 in DAIRY FARM INTL on October 15, 2024 and sell it today you would earn a total of 0.00 from holding DAIRY FARM INTL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAIRY FARM INTL vs. PTT Global Chemical
Performance |
| Timeline |
| DAIRY FARM INTL |
| PTT Global Chemical |
DAIRY FARM and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAIRY FARM and PTT Global
The main advantage of trading using opposite DAIRY FARM and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAIRY FARM 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.| DAIRY FARM vs. Seven West Media | DAIRY FARM vs. Darden Restaurants | DAIRY FARM vs. ETFS Coffee ETC | DAIRY FARM vs. Media and Games |
| PTT Global vs. Astral Foods Limited | PTT Global vs. DAIRY FARM INTL | PTT Global vs. TYSON FOODS A | PTT Global vs. WIMFARM SA EO |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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