Correlation Between Mapletree Industrial and PTT Global
Can any of the company-specific risk be diversified away by investing in both Mapletree Industrial 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 Mapletree Industrial and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Industrial Trust and PTT Global Chemical, you can compare the effects of market volatilities on Mapletree Industrial 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 Mapletree Industrial with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Industrial and PTT Global.
Diversification Opportunities for Mapletree Industrial and PTT Global
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mapletree and PTT is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Industrial Trust 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 Mapletree Industrial 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 Mapletree Industrial Trust 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 Mapletree Industrial i.e., Mapletree Industrial and PTT Global go up and down completely randomly.
Pair Corralation between Mapletree Industrial and PTT Global
Assuming the 90 days horizon Mapletree Industrial is expected to generate 25.7 times less return on investment than PTT Global. But when comparing it to its historical volatility, Mapletree Industrial Trust is 12.12 times less risky than PTT Global. It trades about 0.02 of its potential returns per unit of risk. PTT Global Chemical is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 108.00 in PTT Global Chemical on August 31, 2024 and sell it today you would lose (44.00) from holding PTT Global Chemical or give up 40.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.25% |
| Values | Daily Returns |
Mapletree Industrial Trust vs. PTT Global Chemical
Performance |
| Timeline |
| Mapletree Industrial |
| PTT Global Chemical |
Mapletree Industrial and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Industrial and PTT Global
The main advantage of trading using opposite Mapletree Industrial and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Industrial 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.| Mapletree Industrial vs. Public Storage | Mapletree Industrial vs. Yara International ASA | Mapletree Industrial vs. Ascendas Real Estate | Mapletree Industrial vs. STAG Industrial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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