Correlation Between PTT Public and Com7 PCL
Can any of the company-specific risk be diversified away by investing in both PTT Public and Com7 PCL 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 Com7 PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Com7 PCL, you can compare the effects of market volatilities on PTT Public and Com7 PCL 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 Com7 PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Com7 PCL.
Diversification Opportunities for PTT Public and Com7 PCL
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Com7 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Com7 PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com7 PCL 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 Com7 PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com7 PCL has no effect on the direction of PTT Public i.e., PTT Public and Com7 PCL go up and down completely randomly.
Pair Corralation between PTT Public and Com7 PCL
Assuming the 90 days trading horizon PTT Public is expected to under-perform the Com7 PCL. But the stock apears to be less risky and, when comparing its historical volatility, PTT Public is 2.95 times less risky than Com7 PCL. The stock trades about -0.13 of its potential returns per unit of risk. The Com7 PCL is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Com7 PCL on August 28, 2024 and sell it today you would earn a total of 150.00 from holding Com7 PCL or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Com7 PCL
Performance |
| Timeline |
| PTT Public |
| Com7 PCL |
PTT Public and Com7 PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Com7 PCL
The main advantage of trading using opposite PTT Public and Com7 PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Com7 PCL 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 Com7 PCL will offset losses from the drop in Com7 PCL's long position.The idea behind PTT Public and Com7 PCL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Com7 PCL vs. SCB X Public | Com7 PCL vs. Kasikornbank Public | Com7 PCL vs. PTT Public | Com7 PCL vs. Kasikornbank 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |