Correlation Between PTT Public and Chukai Public
Can any of the company-specific risk be diversified away by investing in both PTT Public and Chukai 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 PTT Public and Chukai Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Chukai Public, you can compare the effects of market volatilities on PTT Public and Chukai 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 PTT Public with a short position of Chukai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Chukai Public.
Diversification Opportunities for PTT Public and Chukai Public
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTT and Chukai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Chukai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chukai Public and PTT Public 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 PTT Public are associated (or correlated) with Chukai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chukai Public has no effect on the direction of PTT Public i.e., PTT Public and Chukai Public go up and down completely randomly.
Pair Corralation between PTT Public and Chukai Public
Assuming the 90 days trading horizon PTT Public is expected to generate 85.1 times less return on investment than Chukai Public. But when comparing it to its historical volatility, PTT Public is 41.94 times less risky than Chukai Public. It trades about 0.02 of its potential returns per unit of risk. Chukai Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Chukai Public on November 5, 2024 and sell it today you would lose (108.00) from holding Chukai Public or give up 67.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Chukai Public
Performance |
| Timeline |
| PTT Public |
| Chukai Public |
PTT Public and Chukai Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Chukai Public
The main advantage of trading using opposite PTT Public and Chukai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Chukai 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 Chukai Public will offset losses from the drop in Chukai Public's long position.| PTT Public vs. The Siam Cement | PTT Public vs. CP ALL Public | PTT Public vs. Airports of Thailand | PTT Public vs. Kasikornbank Public |
| Chukai Public vs. Christiani Nielsen Public | Chukai Public vs. Castle Peak Holdings | Chukai Public vs. Capital Engineering Network | Chukai Public vs. CH Karnchang Public |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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