Correlation Between PTT Global and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both PTT Global and Compugroup Medical 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 Compugroup Medical 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 Compugroup Medical SE, you can compare the effects of market volatilities on PTT Global and Compugroup Medical 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 Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Compugroup Medical.
Diversification Opportunities for PTT Global and Compugroup Medical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Compugroup is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical 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 Compugroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugroup Medical has no effect on the direction of PTT Global i.e., PTT Global and Compugroup Medical go up and down completely randomly.
Pair Corralation between PTT Global and Compugroup Medical
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 1.24 times more return on investment than Compugroup Medical. However, PTT Global is 1.24 times more volatile than Compugroup Medical SE. It trades about 0.06 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about -0.05 per unit of risk. If you would invest 60.00 in PTT Global Chemical on August 28, 2024 and sell it today you would earn a total of 6.00 from holding PTT Global Chemical or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. Compugroup Medical SE
Performance |
| Timeline |
| PTT Global Chemical |
| Compugroup Medical |
PTT Global and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Compugroup Medical
The main advantage of trading using opposite PTT Global and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Compugroup Medical 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 Compugroup Medical will offset losses from the drop in Compugroup Medical's long position.The idea behind PTT Global Chemical and Compugroup Medical SE 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.| Compugroup Medical vs. PTT Global Chemical | Compugroup Medical vs. NIPPON STEEL SPADR | Compugroup Medical vs. COSMOSTEEL HLDGS | Compugroup Medical vs. Khiron Life Sciences |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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