Correlation Between Heidelberg Materials and PTT Global
Can any of the company-specific risk be diversified away by investing in both Heidelberg Materials and PTT Global 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 Heidelberg Materials and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heidelberg Materials AG and PTT Global Chemical, you can compare the effects of market volatilities on Heidelberg Materials and PTT Global 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 Heidelberg Materials with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heidelberg Materials and PTT Global.
Diversification Opportunities for Heidelberg Materials and PTT Global
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Heidelberg and PTT is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Heidelberg Materials AG and PTT Global Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Global Chemical and Heidelberg Materials 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 Heidelberg Materials AG are associated (or correlated) with PTT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Global Chemical has no effect on the direction of Heidelberg Materials i.e., Heidelberg Materials and PTT Global go up and down completely randomly.
Pair Corralation between Heidelberg Materials and PTT Global
Assuming the 90 days trading horizon Heidelberg Materials AG is expected to generate 0.4 times more return on investment than PTT Global. However, Heidelberg Materials AG is 2.5 times less risky than PTT Global. It trades about -0.05 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.05 per unit of risk. If you would invest 12,675 in Heidelberg Materials AG on October 12, 2024 and sell it today you would lose (185.00) from holding Heidelberg Materials AG or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heidelberg Materials AG vs. PTT Global Chemical
Performance |
| Timeline |
| Heidelberg Materials |
| PTT Global Chemical |
Heidelberg Materials and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heidelberg Materials and PTT Global
The main advantage of trading using opposite Heidelberg Materials and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heidelberg Materials position performs unexpectedly, PTT Global 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 PTT Global will offset losses from the drop in PTT Global's long position.| Heidelberg Materials vs. PTT Global Chemical | Heidelberg Materials vs. Soken Chemical Engineering | Heidelberg Materials vs. TRI CHEMICAL LABORATINC | Heidelberg Materials vs. CyberArk Software |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |