Correlation Between NetSol Technologies and PTT Global
Can any of the company-specific risk be diversified away by investing in both NetSol Technologies 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 NetSol Technologies and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NetSol Technologies and PTT Global Chemical, you can compare the effects of market volatilities on NetSol Technologies 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 NetSol Technologies with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetSol Technologies and PTT Global.
Diversification Opportunities for NetSol Technologies and PTT Global
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between NetSol and PTT is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding NetSol Technologies 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 NetSol Technologies 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 NetSol Technologies 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 NetSol Technologies i.e., NetSol Technologies and PTT Global go up and down completely randomly.
Pair Corralation between NetSol Technologies and PTT Global
Assuming the 90 days trading horizon NetSol Technologies is expected to generate 0.52 times more return on investment than PTT Global. However, NetSol Technologies is 1.93 times less risky than PTT Global. It trades about 0.03 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.03 per unit of risk. If you would invest 234.00 in NetSol Technologies on September 1, 2024 and sell it today you would earn a total of 16.00 from holding NetSol Technologies or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NetSol Technologies vs. PTT Global Chemical
Performance |
| Timeline |
| NetSol Technologies |
| PTT Global Chemical |
NetSol Technologies and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NetSol Technologies and PTT Global
The main advantage of trading using opposite NetSol Technologies and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetSol Technologies 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.| NetSol Technologies vs. Guidewire Software | NetSol Technologies vs. Japan Post Insurance | NetSol Technologies vs. CPU SOFTWAREHOUSE | NetSol Technologies vs. HANOVER INSURANCE |
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 CEOs Directory module to screen CEOs from public companies around the world.
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