Correlation Between PTT Global and ANGANG STEEL
Can any of the company-specific risk be diversified away by investing in both PTT Global and ANGANG STEEL 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 ANGANG STEEL 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 ANGANG STEEL H , you can compare the effects of market volatilities on PTT Global and ANGANG STEEL 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 ANGANG STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and ANGANG STEEL.
Diversification Opportunities for PTT Global and ANGANG STEEL
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and ANGANG is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and ANGANG STEEL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGANG STEEL H 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 ANGANG STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGANG STEEL H has no effect on the direction of PTT Global i.e., PTT Global and ANGANG STEEL go up and down completely randomly.
Pair Corralation between PTT Global and ANGANG STEEL
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 1.51 times more return on investment than ANGANG STEEL. However, PTT Global is 1.51 times more volatile than ANGANG STEEL H . It trades about -0.1 of its potential returns per unit of risk. ANGANG STEEL H is currently generating about -0.23 per unit of risk. If you would invest 65.00 in PTT Global Chemical on October 14, 2024 and sell it today you would lose (5.00) from holding PTT Global Chemical or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. ANGANG STEEL H
Performance |
| Timeline |
| PTT Global Chemical |
| ANGANG STEEL H |
PTT Global and ANGANG STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and ANGANG STEEL
The main advantage of trading using opposite PTT Global and ANGANG STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, ANGANG STEEL 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 ANGANG STEEL will offset losses from the drop in ANGANG STEEL's long position.| PTT Global vs. Astral Foods Limited | PTT Global vs. DAIRY FARM INTL | PTT Global vs. TYSON FOODS A | PTT Global vs. WIMFARM SA EO |
| ANGANG STEEL vs. PTT Global Chemical | ANGANG STEEL vs. Sanyo Chemical Industries | ANGANG STEEL vs. Mitsubishi Gas Chemical | ANGANG STEEL vs. INTERSHOP Communications Aktiengesellschaft |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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