Correlation Between Shoprite Holdings and PTT Global
Can any of the company-specific risk be diversified away by investing in both Shoprite Holdings 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 Shoprite Holdings and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoprite Holdings Limited and PTT Global Chemical, you can compare the effects of market volatilities on Shoprite Holdings 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 Shoprite Holdings with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoprite Holdings and PTT Global.
Diversification Opportunities for Shoprite Holdings and PTT Global
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shoprite and PTT is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shoprite Holdings Limited 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 Shoprite Holdings 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 Shoprite Holdings Limited 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 Shoprite Holdings i.e., Shoprite Holdings and PTT Global go up and down completely randomly.
Pair Corralation between Shoprite Holdings and PTT Global
Assuming the 90 days horizon Shoprite Holdings is expected to generate 1.68 times less return on investment than PTT Global. But when comparing it to its historical volatility, Shoprite Holdings Limited is 4.69 times less risky than PTT Global. It trades about 0.09 of its potential returns per unit of risk. PTT Global Chemical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 96.00 in PTT Global Chemical on September 3, 2024 and sell it today you would lose (32.00) from holding PTT Global Chemical or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shoprite Holdings Limited vs. PTT Global Chemical
Performance |
| Timeline |
| Shoprite Holdings |
| PTT Global Chemical |
Shoprite Holdings and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoprite Holdings and PTT Global
The main advantage of trading using opposite Shoprite Holdings and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoprite Holdings 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.| Shoprite Holdings vs. LION ONE METALS | Shoprite Holdings vs. Zijin Mining Group | Shoprite Holdings vs. Nucletron Electronic Aktiengesellschaft | Shoprite Holdings vs. METHODE ELECTRONICS |
| PTT Global vs. Tianjin Capital Environmental | PTT Global vs. MITSUBISHI STEEL MFG | PTT Global vs. Playtech plc | PTT Global vs. Khiron Life Sciences |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |