Correlation Between PTT Global and Sabra Health
Can any of the company-specific risk be diversified away by investing in both PTT Global and Sabra Health 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 Sabra Health 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 Sabra Health Care, you can compare the effects of market volatilities on PTT Global and Sabra Health 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 Sabra Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Sabra Health.
Diversification Opportunities for PTT Global and Sabra Health
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Sabra is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Sabra Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Health Care 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 Sabra Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Health Care has no effect on the direction of PTT Global i.e., PTT Global and Sabra Health go up and down completely randomly.
Pair Corralation between PTT Global and Sabra Health
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 10.56 times more return on investment than Sabra Health. However, PTT Global is 10.56 times more volatile than Sabra Health Care. It trades about 0.03 of its potential returns per unit of risk. Sabra Health Care is currently generating about 0.06 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 Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PTT Global Chemical vs. Sabra Health Care
Performance |
| Timeline |
| PTT Global Chemical |
| Sabra Health Care |
PTT Global and Sabra Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Sabra Health
The main advantage of trading using opposite PTT Global and Sabra Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Sabra Health 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 Sabra Health will offset losses from the drop in Sabra Health's long position.| PTT Global vs. Broadwind | PTT Global vs. CanSino Biologics | PTT Global vs. ScanSource | PTT Global vs. FRACTAL GAMING GROUP |
| Sabra Health vs. ANTA SPORTS PRODUCT | Sabra Health vs. Fukuyama Transporting Co | Sabra Health vs. PTT Global Chemical | Sabra Health vs. China BlueChemical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |