Correlation Between PTT Global and Grenke AG
Can any of the company-specific risk be diversified away by investing in both PTT Global and Grenke AG 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 Grenke AG 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 Grenke AG, you can compare the effects of market volatilities on PTT Global and Grenke AG 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 Grenke AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Grenke AG.
Diversification Opportunities for PTT Global and Grenke AG
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and Grenke is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Grenke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grenke AG 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 Grenke AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grenke AG has no effect on the direction of PTT Global i.e., PTT Global and Grenke AG go up and down completely randomly.
Pair Corralation between PTT Global and Grenke AG
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the Grenke AG. In addition to that, PTT Global is 1.29 times more volatile than Grenke AG. It trades about -0.25 of its total potential returns per unit of risk. Grenke AG is currently generating about 0.2 per unit of volatility. If you would invest 1,550 in Grenke AG on October 25, 2024 and sell it today you would earn a total of 128.00 from holding Grenke AG or generate 8.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 94.44% |
Values | Daily Returns |
PTT Global Chemical vs. Grenke AG
Performance |
Timeline |
PTT Global Chemical |
Grenke AG |
PTT Global and Grenke AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PTT Global and Grenke AG
The main advantage of trading using opposite PTT Global and Grenke AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Grenke AG 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 Grenke AG will offset losses from the drop in Grenke AG's long position.PTT Global vs. Sims Metal Management | PTT Global vs. Ringmetall SE | PTT Global vs. MCEWEN MINING INC | PTT Global vs. Q2M Managementberatung AG |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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