Correlation Between PTT Global and LION ONE
Can any of the company-specific risk be diversified away by investing in both PTT Global and LION ONE 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 LION ONE 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 LION ONE METALS, you can compare the effects of market volatilities on PTT Global and LION ONE 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 LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and LION ONE.
Diversification Opportunities for PTT Global and LION ONE
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PTT and LION is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and LION ONE METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LION ONE METALS 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 LION ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LION ONE METALS has no effect on the direction of PTT Global i.e., PTT Global and LION ONE go up and down completely randomly.
Pair Corralation between PTT Global and LION ONE
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the LION ONE. In addition to that, PTT Global is 1.12 times more volatile than LION ONE METALS. It trades about -0.03 of its total potential returns per unit of risk. LION ONE METALS is currently generating about 0.28 per unit of volatility. If you would invest 17.00 in LION ONE METALS on October 21, 2024 and sell it today you would earn a total of 3.00 from holding LION ONE METALS or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. LION ONE METALS
Performance |
| Timeline |
| PTT Global Chemical |
| LION ONE METALS |
PTT Global and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and LION ONE
The main advantage of trading using opposite PTT Global and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, LION ONE 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 LION ONE will offset losses from the drop in LION ONE's long position.| PTT Global vs. ZINC MEDIA GR | PTT Global vs. Forsys Metals Corp | PTT Global vs. Nippon Light Metal | PTT Global vs. Aluminum of |
| LION ONE vs. PTT Global Chemical | LION ONE vs. Federal Agricultural Mortgage | LION ONE vs. TIANDE CHEMICAL | LION ONE vs. Chongqing Machinery Electric |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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