Correlation Between SERI INDUSTRIAL and PTT Global
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL 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 SERI INDUSTRIAL and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and PTT Global Chemical, you can compare the effects of market volatilities on SERI INDUSTRIAL 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 SERI INDUSTRIAL with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and PTT Global.
Diversification Opportunities for SERI INDUSTRIAL and PTT Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SERI and PTT is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO 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 SERI INDUSTRIAL 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 SERI INDUSTRIAL EO 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 SERI INDUSTRIAL i.e., SERI INDUSTRIAL and PTT Global go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and PTT Global
Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to generate 1.29 times more return on investment than PTT Global. However, SERI INDUSTRIAL is 1.29 times more volatile than PTT Global Chemical. It trades about -0.09 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.27 per unit of risk. If you would invest 242.00 in SERI INDUSTRIAL EO on November 7, 2024 and sell it today you would lose (15.00) from holding SERI INDUSTRIAL EO or give up 6.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. PTT Global Chemical
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| PTT Global Chemical |
SERI INDUSTRIAL and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and PTT Global
The main advantage of trading using opposite SERI INDUSTRIAL and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL 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.| SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
| PTT Global vs. PLAYTECH | PTT Global vs. Acadia Healthcare | PTT Global vs. ANTA SPORTS PRODUCT | PTT Global vs. CARDINAL HEALTH |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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