Correlation Between PTT Global and ARROW ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both PTT Global and ARROW ELECTRONICS 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 ARROW ELECTRONICS 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 ARROW ELECTRONICS, you can compare the effects of market volatilities on PTT Global and ARROW ELECTRONICS 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 ARROW ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and ARROW ELECTRONICS.
Diversification Opportunities for PTT Global and ARROW ELECTRONICS
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and ARROW is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and ARROW ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARROW ELECTRONICS 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 ARROW ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARROW ELECTRONICS has no effect on the direction of PTT Global i.e., PTT Global and ARROW ELECTRONICS go up and down completely randomly.
Pair Corralation between PTT Global and ARROW ELECTRONICS
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the ARROW ELECTRONICS. In addition to that, PTT Global is 2.33 times more volatile than ARROW ELECTRONICS. It trades about -0.46 of its total potential returns per unit of risk. ARROW ELECTRONICS is currently generating about -0.26 per unit of volatility. If you would invest 11,300 in ARROW ELECTRONICS on December 1, 2024 and sell it today you would lose (900.00) from holding ARROW ELECTRONICS or give up 7.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PTT Global Chemical vs. ARROW ELECTRONICS
Performance |
| Timeline |
| PTT Global Chemical |
| ARROW ELECTRONICS |
PTT Global and ARROW ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and ARROW ELECTRONICS
The main advantage of trading using opposite PTT Global and ARROW ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, ARROW ELECTRONICS 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 ARROW ELECTRONICS will offset losses from the drop in ARROW ELECTRONICS's long position.| PTT Global vs. Data Modul AG | PTT Global vs. FANDIFI TECHNOLOGY P | PTT Global vs. INFORMATION SVC GRP | PTT Global vs. Micron Technology |
| ARROW ELECTRONICS vs. Constellation Software | ARROW ELECTRONICS vs. GBS Software AG | ARROW ELECTRONICS vs. EITZEN CHEMICALS | ARROW ELECTRONICS vs. Yuexiu Transport Infrastructure |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |