Correlation Between PTT Global and CEOTRONICS
Can any of the company-specific risk be diversified away by investing in both PTT Global and CEOTRONICS 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 CEOTRONICS 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 CEOTRONICS, you can compare the effects of market volatilities on PTT Global and CEOTRONICS 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 CEOTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and CEOTRONICS.
Diversification Opportunities for PTT Global and CEOTRONICS
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and CEOTRONICS is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS 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 CEOTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS has no effect on the direction of PTT Global i.e., PTT Global and CEOTRONICS go up and down completely randomly.
Pair Corralation between PTT Global and CEOTRONICS
Assuming the 90 days trading horizon PTT Global is expected to generate 3.68 times less return on investment than CEOTRONICS. But when comparing it to its historical volatility, PTT Global Chemical is 1.99 times less risky than CEOTRONICS. It trades about 0.11 of its potential returns per unit of risk. CEOTRONICS is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 530.00 in CEOTRONICS on September 14, 2024 and sell it today you would earn a total of 100.00 from holding CEOTRONICS or generate 18.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. CEOTRONICS
Performance |
| Timeline |
| PTT Global Chemical |
| CEOTRONICS |
PTT Global and CEOTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and CEOTRONICS
The main advantage of trading using opposite PTT Global and CEOTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, CEOTRONICS 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 CEOTRONICS will offset losses from the drop in CEOTRONICS's long position.| PTT Global vs. Cleanaway Waste Management | PTT Global vs. Sims Metal Management | PTT Global vs. Jupiter Fund Management | PTT Global vs. T MOBILE US |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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