Correlation Between PTT Global and CHEMICAL INDUSTRIES
Can any of the company-specific risk be diversified away by investing in both PTT Global and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES, you can compare the effects of market volatilities on PTT Global and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and CHEMICAL INDUSTRIES.
Diversification Opportunities for PTT Global and CHEMICAL INDUSTRIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTT and CHEMICAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and CHEMICAL INDUSTRIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEMICAL INDUSTRIES has no effect on the direction of PTT Global i.e., PTT Global and CHEMICAL INDUSTRIES go up and down completely randomly.
Pair Corralation between PTT Global and CHEMICAL INDUSTRIES
If you would invest 61.00 in PTT Global Chemical on August 29, 2024 and sell it today you would earn a total of 3.00 from holding PTT Global Chemical or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. CHEMICAL INDUSTRIES
Performance |
| Timeline |
| PTT Global Chemical |
| CHEMICAL INDUSTRIES |
PTT Global and CHEMICAL INDUSTRIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and CHEMICAL INDUSTRIES
The main advantage of trading using opposite PTT Global and CHEMICAL INDUSTRIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES will offset losses from the drop in CHEMICAL INDUSTRIES's long position.The idea behind PTT Global Chemical and CHEMICAL INDUSTRIES pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CHEMICAL INDUSTRIES vs. Food Life Companies | CHEMICAL INDUSTRIES vs. TreeHouse Foods | CHEMICAL INDUSTRIES vs. Lifeway Foods | CHEMICAL INDUSTRIES vs. Dairy Farm International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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