Correlation Between PTT Global and SCANSOURCE
Can any of the company-specific risk be diversified away by investing in both PTT Global and SCANSOURCE 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 SCANSOURCE 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 SCANSOURCE, you can compare the effects of market volatilities on PTT Global and SCANSOURCE 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 SCANSOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and SCANSOURCE.
Diversification Opportunities for PTT Global and SCANSOURCE
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and SCANSOURCE is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE 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 SCANSOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE has no effect on the direction of PTT Global i.e., PTT Global and SCANSOURCE go up and down completely randomly.
Pair Corralation between PTT Global and SCANSOURCE
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 8.23 times more return on investment than SCANSOURCE. However, PTT Global is 8.23 times more volatile than SCANSOURCE. It trades about 0.03 of its potential returns per unit of risk. SCANSOURCE is currently generating about 0.05 per unit of risk. If you would invest 104.00 in PTT Global Chemical on October 27, 2024 and sell it today you would lose (47.00) from holding PTT Global Chemical or give up 45.19% 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. SCANSOURCE
Performance |
| Timeline |
| PTT Global Chemical |
| SCANSOURCE |
PTT Global and SCANSOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and SCANSOURCE
The main advantage of trading using opposite PTT Global and SCANSOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, SCANSOURCE 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 SCANSOURCE will offset losses from the drop in SCANSOURCE's long position.| PTT Global vs. S E BANKEN A | PTT Global vs. US Physical Therapy | PTT Global vs. WESANA HEALTH HOLD | PTT Global vs. UNIQA INSURANCE GR |
| SCANSOURCE vs. JD SPORTS FASH | SCANSOURCE vs. Zijin Mining Group | SCANSOURCE vs. DICKS Sporting Goods | SCANSOURCE vs. De Grey Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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