Correlation Between PTT Public and Asia Fiber
Can any of the company-specific risk be diversified away by investing in both PTT Public and Asia Fiber 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 Asia Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Asia Fiber Public, you can compare the effects of market volatilities on PTT Public and Asia Fiber 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 Asia Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Asia Fiber.
Diversification Opportunities for PTT Public and Asia Fiber
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PTT and Asia is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Asia Fiber Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Fiber 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 Asia Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Fiber Public has no effect on the direction of PTT Public i.e., PTT Public and Asia Fiber go up and down completely randomly.
Pair Corralation between PTT Public and Asia Fiber
Assuming the 90 days trading horizon PTT Public is expected to generate 108.8 times less return on investment than Asia Fiber. But when comparing it to its historical volatility, PTT Public is 52.43 times less risky than Asia Fiber. It trades about 0.02 of its potential returns per unit of risk. Asia Fiber Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Asia Fiber Public on August 28, 2024 and sell it today you would lose (156.00) from holding Asia Fiber Public or give up 24.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Asia Fiber Public
Performance |
| Timeline |
| PTT Public |
| Asia Fiber Public |
PTT Public and Asia Fiber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Asia Fiber
The main advantage of trading using opposite PTT Public and Asia Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Asia Fiber 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 Asia Fiber will offset losses from the drop in Asia Fiber's long position.| PTT Public vs. IRPC Public | PTT Public vs. PTT Oil and | PTT Public vs. Power Solution Technologies | PTT Public vs. Star Petroleum Refining |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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