Correlation Between PTT Global and Zimmer Biomet
Can any of the company-specific risk be diversified away by investing in both PTT Global and Zimmer Biomet 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 Zimmer Biomet 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 Zimmer Biomet Holdings, you can compare the effects of market volatilities on PTT Global and Zimmer Biomet 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 Zimmer Biomet. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Zimmer Biomet.
Diversification Opportunities for PTT Global and Zimmer Biomet
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Zimmer is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Zimmer Biomet Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zimmer Biomet Holdings 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 Zimmer Biomet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zimmer Biomet Holdings has no effect on the direction of PTT Global i.e., PTT Global and Zimmer Biomet go up and down completely randomly.
Pair Corralation between PTT Global and Zimmer Biomet
Assuming the 90 days trading horizon PTT Global is expected to generate 1.15 times less return on investment than Zimmer Biomet. In addition to that, PTT Global is 2.6 times more volatile than Zimmer Biomet Holdings. It trades about 0.05 of its total potential returns per unit of risk. Zimmer Biomet Holdings is currently generating about 0.13 per unit of volatility. If you would invest 10,226 in Zimmer Biomet Holdings on October 22, 2024 and sell it today you would earn a total of 329.00 from holding Zimmer Biomet Holdings or generate 3.22% 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. Zimmer Biomet Holdings
Performance |
| Timeline |
| PTT Global Chemical |
| Zimmer Biomet Holdings |
PTT Global and Zimmer Biomet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Zimmer Biomet
The main advantage of trading using opposite PTT Global and Zimmer Biomet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Zimmer Biomet 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 Zimmer Biomet will offset losses from the drop in Zimmer Biomet's long position.| PTT Global vs. RCS MediaGroup SpA | PTT Global vs. TOWNSQUARE MEDIA INC | PTT Global vs. Live Nation Entertainment | PTT Global vs. PARKEN Sport Entertainment |
| Zimmer Biomet vs. Columbia Sportswear | Zimmer Biomet vs. Singapore Telecommunications Limited | Zimmer Biomet vs. Siamgas And Petrochemicals | Zimmer Biomet vs. ePlay Digital |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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