Correlation Between Internet Thailand and PTT Public
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and PTT Public 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 Internet Thailand and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Internet Thailand Public and PTT Public, you can compare the effects of market volatilities on Internet Thailand and PTT Public 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 Internet Thailand with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and PTT Public.
Diversification Opportunities for Internet Thailand and PTT Public
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Internet and PTT is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Internet Thailand 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 Internet Thailand Public are associated (or correlated) with PTT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Public has no effect on the direction of Internet Thailand i.e., Internet Thailand and PTT Public go up and down completely randomly.
Pair Corralation between Internet Thailand and PTT Public
Assuming the 90 days trading horizon Internet Thailand Public is expected to under-perform the PTT Public. In addition to that, Internet Thailand is 2.45 times more volatile than PTT Public. It trades about -0.23 of its total potential returns per unit of risk. PTT Public is currently generating about -0.11 per unit of volatility. If you would invest 3,175 in PTT Public on October 20, 2024 and sell it today you would lose (100.00) from holding PTT Public or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand Public vs. PTT Public
Performance |
| Timeline |
| Internet Thailand Public |
| PTT Public |
Internet Thailand and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and PTT Public
The main advantage of trading using opposite Internet Thailand and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, PTT Public 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 Public will offset losses from the drop in PTT Public's long position.| Internet Thailand vs. Jasmine International Public | Internet Thailand vs. Hana Microelectronics Public | Internet Thailand vs. AP Public | Internet Thailand vs. KCE Electronics Public |
| PTT Public vs. The Siam Cement | PTT Public vs. CP ALL Public | PTT Public vs. Airports of Thailand | PTT Public vs. Kasikornbank Public |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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