Correlation Between PTT Public and Sherwood Public
Can any of the company-specific risk be diversified away by investing in both PTT Public and Sherwood 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 Sherwood 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 Sherwood Public, you can compare the effects of market volatilities on PTT Public and Sherwood 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 Sherwood Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Sherwood Public.
Diversification Opportunities for PTT Public and Sherwood Public
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and Sherwood is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Sherwood Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sherwood 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 Sherwood Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sherwood Public has no effect on the direction of PTT Public i.e., PTT Public and Sherwood Public go up and down completely randomly.
Pair Corralation between PTT Public and Sherwood Public
Assuming the 90 days trading horizon PTT Public is expected to under-perform the Sherwood Public. But the stock apears to be less risky and, when comparing its historical volatility, PTT Public is 64.32 times less risky than Sherwood Public. The stock trades about -0.01 of its potential returns per unit of risk. The Sherwood Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 458.00 in Sherwood Public on September 4, 2024 and sell it today you would lose (156.00) from holding Sherwood Public or give up 34.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
PTT Public vs. Sherwood Public
Performance |
| Timeline |
| PTT Public |
| Sherwood Public |
PTT Public and Sherwood Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Sherwood Public
The main advantage of trading using opposite PTT Public and Sherwood Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Sherwood 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 Sherwood Public will offset losses from the drop in Sherwood Public's long position.| PTT Public vs. PTT Exploration and | PTT Public vs. The Siam Cement | PTT Public vs. CP ALL Public | PTT Public vs. Airports of Thailand |
| Sherwood Public vs. PTT Public | Sherwood Public vs. The Siam Commercial | Sherwood Public vs. Airports of Thailand | Sherwood Public vs. CP ALL 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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