Correlation Between PTT Global and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both PTT Global and Axcelis Technologies 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 Axcelis Technologies 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 Axcelis Technologies, you can compare the effects of market volatilities on PTT Global and Axcelis Technologies 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 Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Axcelis Technologies.
Diversification Opportunities for PTT Global and Axcelis Technologies
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Axcelis is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies 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 Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of PTT Global i.e., PTT Global and Axcelis Technologies go up and down completely randomly.
Pair Corralation between PTT Global and Axcelis Technologies
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 0.87 times more return on investment than Axcelis Technologies. However, PTT Global Chemical is 1.15 times less risky than Axcelis Technologies. It trades about -0.04 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.15 per unit of risk. If you would invest 66.00 in PTT Global Chemical on September 1, 2024 and sell it today you would lose (2.00) from holding PTT Global Chemical or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. Axcelis Technologies
Performance |
| Timeline |
| PTT Global Chemical |
| Axcelis Technologies |
PTT Global and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Axcelis Technologies
The main advantage of trading using opposite PTT Global and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.The idea behind PTT Global Chemical and Axcelis Technologies 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.| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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