Correlation Between PTT Public and Asphere Innovations
Can any of the company-specific risk be diversified away by investing in both PTT Public and Asphere Innovations 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 Asphere Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Asphere Innovations Public, you can compare the effects of market volatilities on PTT Public and Asphere Innovations 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 Asphere Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Asphere Innovations.
Diversification Opportunities for PTT Public and Asphere Innovations
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and Asphere is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Asphere Innovations Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asphere Innovations 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 Asphere Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asphere Innovations has no effect on the direction of PTT Public i.e., PTT Public and Asphere Innovations go up and down completely randomly.
Pair Corralation between PTT Public and Asphere Innovations
Assuming the 90 days trading horizon PTT Public is expected to generate 0.3 times more return on investment than Asphere Innovations. However, PTT Public is 3.35 times less risky than Asphere Innovations. It trades about 0.03 of its potential returns per unit of risk. Asphere Innovations Public is currently generating about -0.07 per unit of risk. If you would invest 2,881 in PTT Public on September 3, 2024 and sell it today you would earn a total of 344.00 from holding PTT Public or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Asphere Innovations Public
Performance |
| Timeline |
| PTT Public |
| Asphere Innovations |
PTT Public and Asphere Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Asphere Innovations
The main advantage of trading using opposite PTT Public and Asphere Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Asphere Innovations 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 Asphere Innovations will offset losses from the drop in Asphere Innovations' 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 |
| Asphere Innovations vs. SRI TRANG GLOVES | Asphere Innovations vs. AEON Thana Sinsap | Asphere Innovations vs. AEON Thana Sinsap | Asphere Innovations vs. Asian Alliance International |
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 CEOs Directory module to screen CEOs from public companies around the world.
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