Correlation Between PTT Global and RELIANCE STEEL
Can any of the company-specific risk be diversified away by investing in both PTT Global and RELIANCE 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 RELIANCE 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 RELIANCE STEEL AL, you can compare the effects of market volatilities on PTT Global and RELIANCE 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 RELIANCE STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and RELIANCE STEEL.
Diversification Opportunities for PTT Global and RELIANCE STEEL
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between PTT and RELIANCE is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and RELIANCE STEEL AL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RELIANCE STEEL AL 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 RELIANCE STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RELIANCE STEEL AL has no effect on the direction of PTT Global i.e., PTT Global and RELIANCE STEEL go up and down completely randomly.
Pair Corralation between PTT Global and RELIANCE STEEL
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the RELIANCE STEEL. In addition to that, PTT Global is 2.5 times more volatile than RELIANCE STEEL AL. It trades about -0.04 of its total potential returns per unit of risk. RELIANCE STEEL AL is currently generating about -0.03 per unit of volatility. If you would invest 29,723 in RELIANCE STEEL AL on October 14, 2024 and sell it today you would lose (3,603) from holding RELIANCE STEEL AL or give up 12.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. RELIANCE STEEL AL
Performance |
| Timeline |
| PTT Global Chemical |
| RELIANCE STEEL AL |
PTT Global and RELIANCE STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and RELIANCE STEEL
The main advantage of trading using opposite PTT Global and RELIANCE STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, RELIANCE 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 RELIANCE STEEL will offset losses from the drop in RELIANCE STEEL's long position.| PTT Global vs. Broadwind | PTT Global vs. CanSino Biologics | PTT Global vs. ScanSource | PTT Global vs. FRACTAL GAMING GROUP |
| RELIANCE STEEL vs. PTT Global Chemical | RELIANCE STEEL vs. China BlueChemical | RELIANCE STEEL vs. Silicon Motion Technology | RELIANCE STEEL vs. Mitsubishi Gas 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |