Correlation Between North East and PTT Public
Can any of the company-specific risk be diversified away by investing in both North East 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 North East and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North East Rubbers and PTT Public, you can compare the effects of market volatilities on North East 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 North East with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of North East and PTT Public.
Diversification Opportunities for North East and PTT Public
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between North and PTT is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding North East Rubbers and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and North East 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 North East Rubbers 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 North East i.e., North East and PTT Public go up and down completely randomly.
Pair Corralation between North East and PTT Public
Assuming the 90 days trading horizon North East Rubbers is expected to under-perform the PTT Public. In addition to that, North East is 1.56 times more volatile than PTT Public. It trades about 0.0 of its total potential returns per unit of risk. PTT Public is currently generating about 0.03 per unit of volatility. If you would invest 2,836 in PTT Public on September 12, 2024 and sell it today you would earn a total of 364.00 from holding PTT Public or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
North East Rubbers vs. PTT Public
Performance |
| Timeline |
| North East Rubbers |
| PTT Public |
North East and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North East and PTT Public
The main advantage of trading using opposite North East and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North East 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.| North East vs. Sri Trang Agro Industry | North East vs. Jay Mart Public | North East vs. Com7 PCL | North East vs. Energy Absolute Public |
| PTT Public vs. PTT Exploration and | PTT Public vs. The Siam Cement | PTT Public vs. CP ALL Public | PTT Public vs. Airports of Thailand |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |