Correlation Between Microsoft and PTT Global
Can any of the company-specific risk be diversified away by investing in both Microsoft 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 Microsoft and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and PTT Global Chemical, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and PTT Global.
Diversification Opportunities for Microsoft and PTT Global
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and PTT is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft 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 Microsoft 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 Microsoft 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 Microsoft i.e., Microsoft and PTT Global go up and down completely randomly.
Pair Corralation between Microsoft and PTT Global
Assuming the 90 days trading horizon Microsoft is expected to generate 4.0 times less return on investment than PTT Global. But when comparing it to its historical volatility, Microsoft is 12.29 times less risky than PTT Global. It trades about 0.1 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 107.00 in PTT Global Chemical on October 19, 2024 and sell it today you would lose (49.00) from holding PTT Global Chemical or give up 45.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. PTT Global Chemical
Performance |
| Timeline |
| Microsoft |
| PTT Global Chemical |
Microsoft and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and PTT Global
The main advantage of trading using opposite Microsoft and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.| Microsoft vs. FAST RETAIL ADR | Microsoft vs. National Retail Properties | Microsoft vs. INFORMATION SVC GRP | Microsoft vs. Siamgas And Petrochemicals |
| PTT Global vs. AOYAMA TRADING | PTT Global vs. ECHO INVESTMENT ZY | PTT Global vs. Goodyear Tire Rubber | PTT Global vs. Treasury Wine Estates |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |