Correlation Between PTT Global and X FAB
Can any of the company-specific risk be diversified away by investing in both PTT Global and X FAB 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 X FAB 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 X FAB Silicon Foundries, you can compare the effects of market volatilities on PTT Global and X FAB 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 X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and X FAB.
Diversification Opportunities for PTT Global and X FAB
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and XFB is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of PTT Global i.e., PTT Global and X FAB go up and down completely randomly.
Pair Corralation between PTT Global and X FAB
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the X FAB. In addition to that, PTT Global is 1.0 times more volatile than X FAB Silicon Foundries. It trades about -0.25 of its total potential returns per unit of risk. X FAB Silicon Foundries is currently generating about 0.07 per unit of volatility. If you would invest 501.00 in X FAB Silicon Foundries on October 25, 2024 and sell it today you would earn a total of 15.00 from holding X FAB Silicon Foundries or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. X FAB Silicon Foundries
Performance |
| Timeline |
| PTT Global Chemical |
| X FAB Silicon |
PTT Global and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and X FAB
The main advantage of trading using opposite PTT Global and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.| PTT Global vs. Sims Metal Management | PTT Global vs. Ringmetall SE | PTT Global vs. MCEWEN MINING INC | PTT Global vs. Q2M Managementberatung AG |
| X FAB vs. BOSTON BEER A | X FAB vs. Thai Beverage Public | X FAB vs. China Communications Services | X FAB vs. Molson Coors Beverage |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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