Correlation Between PTT Global and National Beverage
Can any of the company-specific risk be diversified away by investing in both PTT Global and National Beverage 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 PTT Global and National Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Global Chemical and National Beverage Corp, you can compare the effects of market volatilities on PTT Global and National Beverage 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 PTT Global with a short position of National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and National Beverage.
Diversification Opportunities for PTT Global and National Beverage
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and National is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage Corp and PTT Global 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 PTT Global Chemical are associated (or correlated) with National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of PTT Global i.e., PTT Global and National Beverage go up and down completely randomly.
Pair Corralation between PTT Global and National Beverage
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the National Beverage. In addition to that, PTT Global is 2.28 times more volatile than National Beverage Corp. It trades about -0.25 of its total potential returns per unit of risk. National Beverage Corp is currently generating about -0.1 per unit of volatility. If you would invest 4,180 in National Beverage Corp on October 25, 2024 and sell it today you would lose (100.00) from holding National Beverage Corp or give up 2.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. National Beverage Corp
Performance |
| Timeline |
| PTT Global Chemical |
| National Beverage Corp |
PTT Global and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and National Beverage
The main advantage of trading using opposite PTT Global and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, National Beverage 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 National Beverage will offset losses from the drop in National Beverage's long position.| PTT Global vs. Sims Metal Management | PTT Global vs. Ringmetall SE | PTT Global vs. MCEWEN MINING INC | PTT Global vs. Q2M Managementberatung AG |
| National Beverage vs. BOS BETTER ONLINE | National Beverage vs. BOSTON BEER A | National Beverage vs. GEAR4MUSIC LS 10 | National Beverage vs. THAI BEVERAGE |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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