Correlation Between PTT GLBL and AIR LIQUIDE
Can any of the company-specific risk be diversified away by investing in both PTT GLBL and AIR LIQUIDE 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 GLBL and AIR LIQUIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT GLBL CHEM NVDR and AIR LIQUIDE ADR, you can compare the effects of market volatilities on PTT GLBL and AIR LIQUIDE 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 GLBL with a short position of AIR LIQUIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT GLBL and AIR LIQUIDE.
Diversification Opportunities for PTT GLBL and AIR LIQUIDE
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and AIR is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PTT GLBL CHEM NVDR and AIR LIQUIDE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR LIQUIDE ADR and PTT GLBL 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 GLBL CHEM NVDR are associated (or correlated) with AIR LIQUIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR LIQUIDE ADR has no effect on the direction of PTT GLBL i.e., PTT GLBL and AIR LIQUIDE go up and down completely randomly.
Pair Corralation between PTT GLBL and AIR LIQUIDE
Assuming the 90 days trading horizon PTT GLBL CHEM NVDR is expected to generate 8.08 times more return on investment than AIR LIQUIDE. However, PTT GLBL is 8.08 times more volatile than AIR LIQUIDE ADR. It trades about 0.03 of its potential returns per unit of risk. AIR LIQUIDE ADR is currently generating about 0.04 per unit of risk. If you would invest 100.00 in PTT GLBL CHEM NVDR on September 5, 2024 and sell it today you would lose (31.00) from holding PTT GLBL CHEM NVDR or give up 31.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT GLBL CHEM NVDR vs. AIR LIQUIDE ADR
Performance |
| Timeline |
| PTT GLBL CHEM |
| AIR LIQUIDE ADR |
PTT GLBL and AIR LIQUIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT GLBL and AIR LIQUIDE
The main advantage of trading using opposite PTT GLBL and AIR LIQUIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT GLBL position performs unexpectedly, AIR LIQUIDE 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 AIR LIQUIDE will offset losses from the drop in AIR LIQUIDE's long position.| PTT GLBL vs. Singapore Airlines Limited | PTT GLBL vs. Adtalem Global Education | PTT GLBL vs. SPORT LISBOA E | PTT GLBL vs. EMBARK EDUCATION LTD |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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