Correlation Between MCS Steel and PTT Public
Can any of the company-specific risk be diversified away by investing in both MCS Steel 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 MCS Steel and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCS Steel Public and PTT Public, you can compare the effects of market volatilities on MCS Steel 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 MCS Steel with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCS Steel and PTT Public.
Diversification Opportunities for MCS Steel and PTT Public
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCS and PTT is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding MCS Steel Public and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and MCS Steel 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 MCS Steel 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 MCS Steel i.e., MCS Steel and PTT Public go up and down completely randomly.
Pair Corralation between MCS Steel and PTT Public
Assuming the 90 days trading horizon MCS Steel Public is expected to generate 1.5 times more return on investment than PTT Public. However, MCS Steel is 1.5 times more volatile than PTT Public. It trades about -0.05 of its potential returns per unit of risk. PTT Public is currently generating about -0.16 per unit of risk. If you would invest 730.00 in MCS Steel Public on August 31, 2024 and sell it today you would lose (15.00) from holding MCS Steel Public or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCS Steel Public vs. PTT Public
Performance |
| Timeline |
| MCS Steel Public |
| PTT Public |
MCS Steel and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCS Steel and PTT Public
The main advantage of trading using opposite MCS Steel and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCS Steel 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.| MCS Steel vs. Lalin Property Public | MCS Steel vs. Land and Houses | MCS Steel vs. Banpu Public | MCS Steel vs. TISCO Financial Group |
| PTT Public vs. IRPC Public | PTT Public vs. PTT Oil and | PTT Public vs. Power Solution Technologies | PTT Public vs. Star Petroleum Refining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |