Correlation Between EssilorLuxottica and PTT Global
Can any of the company-specific risk be diversified away by investing in both EssilorLuxottica 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 EssilorLuxottica and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EssilorLuxottica Socit anonyme and PTT Global Chemical, you can compare the effects of market volatilities on EssilorLuxottica 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 EssilorLuxottica with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of EssilorLuxottica and PTT Global.
Diversification Opportunities for EssilorLuxottica and PTT Global
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EssilorLuxottica and PTT is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding EssilorLuxottica Socit anonyme 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 EssilorLuxottica 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 EssilorLuxottica Socit anonyme 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 EssilorLuxottica i.e., EssilorLuxottica and PTT Global go up and down completely randomly.
Pair Corralation between EssilorLuxottica and PTT Global
Assuming the 90 days horizon EssilorLuxottica Socit anonyme is expected to generate 0.51 times more return on investment than PTT Global. However, EssilorLuxottica Socit anonyme is 1.95 times less risky than PTT Global. It trades about 0.18 of its potential returns per unit of risk. PTT Global Chemical is currently generating about 0.06 per unit of risk. If you would invest 21,910 in EssilorLuxottica Socit anonyme on August 29, 2024 and sell it today you would earn a total of 1,320 from holding EssilorLuxottica Socit anonyme or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EssilorLuxottica Socit anonyme vs. PTT Global Chemical
Performance |
| Timeline |
| EssilorLuxottica Socit |
| PTT Global Chemical |
EssilorLuxottica and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EssilorLuxottica and PTT Global
The main advantage of trading using opposite EssilorLuxottica and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EssilorLuxottica 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.| EssilorLuxottica vs. Cars Inc | EssilorLuxottica vs. Grupo Carso SAB | EssilorLuxottica vs. Commercial Vehicle Group | EssilorLuxottica vs. KENEDIX OFFICE INV |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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