Correlation Between PTT Global and Richardson Electronics
Can any of the company-specific risk be diversified away by investing in both PTT Global and Richardson Electronics 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 Richardson Electronics 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 Richardson Electronics, you can compare the effects of market volatilities on PTT Global and Richardson Electronics 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 Richardson Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Richardson Electronics.
Diversification Opportunities for PTT Global and Richardson Electronics
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTT and Richardson is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Richardson Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richardson Electronics 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 Richardson Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richardson Electronics has no effect on the direction of PTT Global i.e., PTT Global and Richardson Electronics go up and down completely randomly.
Pair Corralation between PTT Global and Richardson Electronics
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 4.49 times more return on investment than Richardson Electronics. However, PTT Global is 4.49 times more volatile than Richardson Electronics. It trades about 0.03 of its potential returns per unit of risk. Richardson Electronics is currently generating about -0.01 per unit of risk. If you would invest 108.00 in PTT Global Chemical on October 13, 2024 and sell it today you would lose (48.00) from holding PTT Global Chemical or give up 44.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
PTT Global Chemical vs. Richardson Electronics
Performance |
| Timeline |
| PTT Global Chemical |
| Richardson Electronics |
PTT Global and Richardson Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Richardson Electronics
The main advantage of trading using opposite PTT Global and Richardson Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Richardson Electronics 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 Richardson Electronics will offset losses from the drop in Richardson Electronics' long position.| PTT Global vs. Broadwind | PTT Global vs. CanSino Biologics | PTT Global vs. ScanSource | PTT Global vs. FRACTAL GAMING GROUP |
| Richardson Electronics vs. Soken Chemical Engineering | Richardson Electronics vs. PTT Global Chemical | Richardson Electronics vs. Siamgas And Petrochemicals | Richardson Electronics vs. KINGBOARD CHEMICAL |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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