Correlation Between PTT Public and Supalai Public
Can any of the company-specific risk be diversified away by investing in both PTT Public and Supalai 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 Supalai 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 Supalai Public, you can compare the effects of market volatilities on PTT Public and Supalai 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 Supalai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Supalai Public.
Diversification Opportunities for PTT Public and Supalai Public
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTT and Supalai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Supalai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supalai 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 Supalai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supalai Public has no effect on the direction of PTT Public i.e., PTT Public and Supalai Public go up and down completely randomly.
Pair Corralation between PTT Public and Supalai Public
Assuming the 90 days trading horizon PTT Public is expected to generate 0.94 times more return on investment than Supalai Public. However, PTT Public is 1.07 times less risky than Supalai Public. It trades about -0.02 of its potential returns per unit of risk. Supalai Public is currently generating about -0.29 per unit of risk. If you would invest 3,175 in PTT Public on November 3, 2024 and sell it today you would lose (25.00) from holding PTT Public or give up 0.79% 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. Supalai Public
Performance |
| Timeline |
| PTT Public |
| Supalai Public |
PTT Public and Supalai Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Supalai Public
The main advantage of trading using opposite PTT Public and Supalai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Supalai 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 Supalai Public will offset losses from the drop in Supalai 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 |
| Supalai Public vs. Land and Houses | Supalai Public vs. AP Public | Supalai Public vs. Quality Houses Public | Supalai Public vs. Central Pattana 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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