Correlation Between PTT Global and MIRAMAR HOTEL
Can any of the company-specific risk be diversified away by investing in both PTT Global and MIRAMAR HOTEL 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 MIRAMAR HOTEL 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 MIRAMAR HOTEL INV, you can compare the effects of market volatilities on PTT Global and MIRAMAR HOTEL 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 MIRAMAR HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and MIRAMAR HOTEL.
Diversification Opportunities for PTT Global and MIRAMAR HOTEL
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and MIRAMAR is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and MIRAMAR HOTEL INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRAMAR HOTEL INV 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 MIRAMAR HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRAMAR HOTEL INV has no effect on the direction of PTT Global i.e., PTT Global and MIRAMAR HOTEL go up and down completely randomly.
Pair Corralation between PTT Global and MIRAMAR HOTEL
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the MIRAMAR HOTEL. In addition to that, PTT Global is 3.15 times more volatile than MIRAMAR HOTEL INV. It trades about -0.1 of its total potential returns per unit of risk. MIRAMAR HOTEL INV is currently generating about -0.11 per unit of volatility. If you would invest 105.00 in MIRAMAR HOTEL INV on January 13, 2025 and sell it today you would lose (5.00) from holding MIRAMAR HOTEL INV or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. MIRAMAR HOTEL INV
Performance |
| Timeline |
| PTT Global Chemical |
| MIRAMAR HOTEL INV |
PTT Global and MIRAMAR HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and MIRAMAR HOTEL
The main advantage of trading using opposite PTT Global and MIRAMAR HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, MIRAMAR HOTEL 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 MIRAMAR HOTEL will offset losses from the drop in MIRAMAR HOTEL's long position.| PTT Global vs. CapitaLand Investment Limited | PTT Global vs. Guangdong Investment Limited | PTT Global vs. ALLFUNDS GROUP EO 0025 | PTT Global vs. Keck Seng Investments |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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