Correlation Between PTT Global and KORIAN (KO2SG)
Can any of the company-specific risk be diversified away by investing in both PTT Global and KORIAN (KO2SG) 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 KORIAN (KO2SG) 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 KORIAN, you can compare the effects of market volatilities on PTT Global and KORIAN (KO2SG) 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 KORIAN (KO2SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and KORIAN (KO2SG).
Diversification Opportunities for PTT Global and KORIAN (KO2SG)
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTT and KORIAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and KORIAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORIAN (KO2SG) 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 KORIAN (KO2SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORIAN (KO2SG) has no effect on the direction of PTT Global i.e., PTT Global and KORIAN (KO2SG) go up and down completely randomly.
Pair Corralation between PTT Global and KORIAN (KO2SG)
If you would invest 95.00 in PTT Global Chemical on September 12, 2024 and sell it today you would lose (30.00) from holding PTT Global Chemical or give up 31.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PTT Global Chemical vs. KORIAN
Performance |
| Timeline |
| PTT Global Chemical |
| KORIAN (KO2SG) |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
PTT Global and KORIAN (KO2SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and KORIAN (KO2SG)
The main advantage of trading using opposite PTT Global and KORIAN (KO2SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, KORIAN (KO2SG) 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 KORIAN (KO2SG) will offset losses from the drop in KORIAN (KO2SG)'s long position.The idea behind PTT Global Chemical and KORIAN 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.| KORIAN (KO2SG) vs. Materialise NV | KORIAN (KO2SG) vs. Iridium Communications | KORIAN (KO2SG) vs. Eagle Materials | KORIAN (KO2SG) vs. APPLIED MATERIALS |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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