Correlation Between PTT Global and Berry Global
Can any of the company-specific risk be diversified away by investing in both PTT Global and Berry 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 PTT Global and Berry Global 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 Berry Global Group, you can compare the effects of market volatilities on PTT Global and Berry 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 PTT Global with a short position of Berry Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Berry Global.
Diversification Opportunities for PTT Global and Berry Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTT and Berry is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Berry Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berry Global Group 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 Berry Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berry Global Group has no effect on the direction of PTT Global i.e., PTT Global and Berry Global go up and down completely randomly.
Pair Corralation between PTT Global and Berry Global
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the Berry Global. In addition to that, PTT Global is 1.06 times more volatile than Berry Global Group. It trades about -0.04 of its total potential returns per unit of risk. Berry Global Group is currently generating about 0.12 per unit of volatility. If you would invest 6,450 in Berry Global Group on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Berry Global Group or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PTT Global Chemical vs. Berry Global Group
Performance |
| Timeline |
| PTT Global Chemical |
| Berry Global Group |
PTT Global and Berry Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Berry Global
The main advantage of trading using opposite PTT Global and Berry Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Berry 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 Berry Global will offset losses from the drop in Berry Global's long position.The idea behind PTT Global Chemical and Berry Global Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Berry Global vs. Air New Zealand | Berry Global vs. Pentair plc | Berry Global vs. PTT Global Chemical | Berry Global vs. HF SINCLAIR P |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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