Correlation Between PTT Global and Fevertree Drinks
Can any of the company-specific risk be diversified away by investing in both PTT Global and Fevertree Drinks 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 Fevertree Drinks 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 Fevertree Drinks PLC, you can compare the effects of market volatilities on PTT Global and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Fevertree Drinks.
Diversification Opportunities for PTT Global and Fevertree Drinks
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Fevertree is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Fevertree Drinks PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks PLC 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks PLC has no effect on the direction of PTT Global i.e., PTT Global and Fevertree Drinks go up and down completely randomly.
Pair Corralation between PTT Global and Fevertree Drinks
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the Fevertree Drinks. In addition to that, PTT Global is 1.63 times more volatile than Fevertree Drinks PLC. It trades about -0.08 of its total potential returns per unit of risk. Fevertree Drinks PLC is currently generating about -0.11 per unit of volatility. If you would invest 830.00 in Fevertree Drinks PLC on October 30, 2024 and sell it today you would lose (70.00) from holding Fevertree Drinks PLC or give up 8.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. Fevertree Drinks PLC
Performance |
| Timeline |
| PTT Global Chemical |
| Fevertree Drinks PLC |
PTT Global and Fevertree Drinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Fevertree Drinks
The main advantage of trading using opposite PTT Global and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.| PTT Global vs. Compugroup Medical SE | PTT Global vs. SERI INDUSTRIAL EO | PTT Global vs. MCEWEN MINING INC | PTT Global vs. Diamyd Medical AB |
| Fevertree Drinks vs. ADRIATIC METALS LS 013355 | Fevertree Drinks vs. ALTAIR RES INC | Fevertree Drinks vs. AEON METALS LTD | Fevertree Drinks vs. SIERRA METALS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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