Correlation Between Pacific Pipe and PTT Public
Can any of the company-specific risk be diversified away by investing in both Pacific Pipe 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 Pacific Pipe and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Pipe Public and PTT Public, you can compare the effects of market volatilities on Pacific Pipe 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 Pacific Pipe with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Pipe and PTT Public.
Diversification Opportunities for Pacific Pipe and PTT Public
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pacific and PTT is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Pipe Public and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Pacific Pipe 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 Pacific Pipe 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 Pacific Pipe i.e., Pacific Pipe and PTT Public go up and down completely randomly.
Pair Corralation between Pacific Pipe and PTT Public
Assuming the 90 days trading horizon Pacific Pipe Public is expected to under-perform the PTT Public. In addition to that, Pacific Pipe is 2.17 times more volatile than PTT Public. It trades about -0.05 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 2,859 in PTT Public on September 4, 2024 and sell it today you would earn a total of 366.00 from holding PTT Public or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Pacific Pipe Public vs. PTT Public
Performance |
| Timeline |
| Pacific Pipe Public |
| PTT Public |
Pacific Pipe and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Pipe and PTT Public
The main advantage of trading using opposite Pacific Pipe and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Pipe 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.| Pacific Pipe vs. TMT Steel Public | Pacific Pipe vs. MCS Steel Public | Pacific Pipe vs. KGI Securities Public | Pacific Pipe vs. Permsin Steel Works |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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