Correlation Between PTT Public and Chumporn Palm
Can any of the company-specific risk be diversified away by investing in both PTT Public and Chumporn Palm 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 Chumporn Palm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Chumporn Palm Oil, you can compare the effects of market volatilities on PTT Public and Chumporn Palm 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 Chumporn Palm. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Chumporn Palm.
Diversification Opportunities for PTT Public and Chumporn Palm
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Chumporn is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Chumporn Palm Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chumporn Palm Oil 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 Chumporn Palm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chumporn Palm Oil has no effect on the direction of PTT Public i.e., PTT Public and Chumporn Palm go up and down completely randomly.
Pair Corralation between PTT Public and Chumporn Palm
Assuming the 90 days trading horizon PTT Public is expected to generate 64.83 times less return on investment than Chumporn Palm. But when comparing it to its historical volatility, PTT Public is 42.68 times less risky than Chumporn Palm. It trades about 0.03 of its potential returns per unit of risk. Chumporn Palm Oil is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Chumporn Palm Oil on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Chumporn Palm Oil or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Chumporn Palm Oil
Performance |
| Timeline |
| PTT Public |
| Chumporn Palm Oil |
PTT Public and Chumporn Palm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Chumporn Palm
The main advantage of trading using opposite PTT Public and Chumporn Palm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Chumporn Palm 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 Chumporn Palm will offset losses from the drop in Chumporn Palm'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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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