Correlation Between PTT Global and Resona Holdings
Can any of the company-specific risk be diversified away by investing in both PTT Global and Resona Holdings 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 Resona Holdings 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 Resona Holdings, you can compare the effects of market volatilities on PTT Global and Resona Holdings 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 Resona Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Resona Holdings.
Diversification Opportunities for PTT Global and Resona Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Resona is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Resona Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resona Holdings 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 Resona Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resona Holdings has no effect on the direction of PTT Global i.e., PTT Global and Resona Holdings go up and down completely randomly.
Pair Corralation between PTT Global and Resona Holdings
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the Resona Holdings. But the stock apears to be less risky and, when comparing its historical volatility, PTT Global Chemical is 1.15 times less risky than Resona Holdings. The stock trades about -0.1 of its potential returns per unit of risk. The Resona Holdings is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Resona Holdings on September 3, 2024 and sell it today you would earn a total of 150.00 from holding Resona Holdings or generate 23.81% 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. Resona Holdings
Performance |
| Timeline |
| PTT Global Chemical |
| Resona Holdings |
PTT Global and Resona Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Resona Holdings
The main advantage of trading using opposite PTT Global and Resona Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Resona Holdings 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 Resona Holdings will offset losses from the drop in Resona Holdings' long position.| PTT Global vs. Tianjin Capital Environmental | PTT Global vs. MITSUBISHI STEEL MFG | PTT Global vs. Playtech plc | PTT Global vs. Khiron Life Sciences |
| Resona Holdings vs. Soken Chemical Engineering | Resona Holdings vs. WESTLAKE CHEMICAL | Resona Holdings vs. PTT Global Chemical | Resona Holdings vs. Aegean Airlines SA |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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