Correlation Between PTT Global and VISHAY INTERTECHNOL
Can any of the company-specific risk be diversified away by investing in both PTT Global and VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL , you can compare the effects of market volatilities on PTT Global and VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and VISHAY INTERTECHNOL.
Diversification Opportunities for PTT Global and VISHAY INTERTECHNOL
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and VISHAY is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and VISHAY INTERTECHNOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VISHAY INTERTECHNOL has no effect on the direction of PTT Global i.e., PTT Global and VISHAY INTERTECHNOL go up and down completely randomly.
Pair Corralation between PTT Global and VISHAY INTERTECHNOL
Assuming the 90 days trading horizon PTT Global is expected to generate 13.59 times less return on investment than VISHAY INTERTECHNOL. But when comparing it to its historical volatility, PTT Global Chemical is 1.46 times less risky than VISHAY INTERTECHNOL. It trades about 0.01 of its potential returns per unit of risk. VISHAY INTERTECHNOL is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,613 in VISHAY INTERTECHNOL on September 12, 2024 and sell it today you would earn a total of 105.00 from holding VISHAY INTERTECHNOL or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. VISHAY INTERTECHNOL
Performance |
| Timeline |
| PTT Global Chemical |
| VISHAY INTERTECHNOL |
PTT Global and VISHAY INTERTECHNOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and VISHAY INTERTECHNOL
The main advantage of trading using opposite PTT Global and VISHAY INTERTECHNOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, VISHAY INTERTECHNOL 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 VISHAY INTERTECHNOL will offset losses from the drop in VISHAY INTERTECHNOL's long position.The idea behind PTT Global Chemical and VISHAY INTERTECHNOL 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.| VISHAY INTERTECHNOL vs. Cars Inc | VISHAY INTERTECHNOL vs. GEELY AUTOMOBILE | VISHAY INTERTECHNOL vs. MITSUBISHI STEEL MFG | VISHAY INTERTECHNOL vs. NIPPON STEEL SPADR |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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