Correlation Between PTT Public and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both PTT Public and Bangkok Dusit 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 Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Bangkok Dusit Medical, you can compare the effects of market volatilities on PTT Public and Bangkok Dusit 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 Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Bangkok Dusit.
Diversification Opportunities for PTT Public and Bangkok Dusit
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Bangkok is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical 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 Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of PTT Public i.e., PTT Public and Bangkok Dusit go up and down completely randomly.
Pair Corralation between PTT Public and Bangkok Dusit
Assuming the 90 days trading horizon PTT Public is expected to generate 0.82 times more return on investment than Bangkok Dusit. However, PTT Public is 1.23 times less risky than Bangkok Dusit. It trades about 0.02 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about -0.02 per unit of risk. If you would invest 2,971 in PTT Public on August 31, 2024 and sell it today you would earn a total of 254.00 from holding PTT Public or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
PTT Public vs. Bangkok Dusit Medical
Performance |
| Timeline |
| PTT Public |
| Bangkok Dusit Medical |
PTT Public and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Bangkok Dusit
The main advantage of trading using opposite PTT Public and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Bangkok Dusit 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 Bangkok Dusit will offset losses from the drop in Bangkok Dusit'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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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