Correlation Between PTT Global and SPORTING
Can any of the company-specific risk be diversified away by investing in both PTT Global and SPORTING 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 SPORTING 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 SPORTING, you can compare the effects of market volatilities on PTT Global and SPORTING 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 SPORTING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and SPORTING.
Diversification Opportunities for PTT Global and SPORTING
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and SPORTING is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and SPORTING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPORTING 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 SPORTING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPORTING has no effect on the direction of PTT Global i.e., PTT Global and SPORTING go up and down completely randomly.
Pair Corralation between PTT Global and SPORTING
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the SPORTING. But the stock apears to be less risky and, when comparing its historical volatility, PTT Global Chemical is 1.35 times less risky than SPORTING. The stock trades about -0.2 of its potential returns per unit of risk. The SPORTING is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 81.00 in SPORTING on October 30, 2024 and sell it today you would earn a total of 7.00 from holding SPORTING or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
PTT Global Chemical vs. SPORTING
Performance |
| Timeline |
| PTT Global Chemical |
| SPORTING |
PTT Global and SPORTING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and SPORTING
The main advantage of trading using opposite PTT Global and SPORTING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, SPORTING 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 SPORTING will offset losses from the drop in SPORTING's long position.| PTT Global vs. Compugroup Medical SE | PTT Global vs. SERI INDUSTRIAL EO | PTT Global vs. MCEWEN MINING INC | PTT Global vs. Diamyd Medical AB |
| SPORTING vs. Air Transport Services | SPORTING vs. Gold Road Resources | SPORTING vs. Television Broadcasts Limited | SPORTING vs. Eidesvik Offshore ASA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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