Correlation Between PTT Public and CSP Steel
Can any of the company-specific risk be diversified away by investing in both PTT Public and CSP Steel 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 CSP Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and CSP Steel Center, you can compare the effects of market volatilities on PTT Public and CSP Steel 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 CSP Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and CSP Steel.
Diversification Opportunities for PTT Public and CSP Steel
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and CSP is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and CSP Steel Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Steel Center 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 CSP Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Steel Center has no effect on the direction of PTT Public i.e., PTT Public and CSP Steel go up and down completely randomly.
Pair Corralation between PTT Public and CSP Steel
Assuming the 90 days trading horizon PTT Public is expected to under-perform the CSP Steel. But the stock apears to be less risky and, when comparing its historical volatility, PTT Public is 64.33 times less risky than CSP Steel. The stock trades about -0.01 of its potential returns per unit of risk. The CSP Steel Center is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 96.00 in CSP Steel Center on September 4, 2024 and sell it today you would lose (39.00) from holding CSP Steel Center or give up 40.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
PTT Public vs. CSP Steel Center
Performance |
| Timeline |
| PTT Public |
| CSP Steel Center |
PTT Public and CSP Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and CSP Steel
The main advantage of trading using opposite PTT Public and CSP Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, CSP Steel 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 CSP Steel will offset losses from the drop in CSP Steel'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 |
| CSP Steel vs. PTT Public | CSP Steel vs. PTT Exploration and | CSP Steel vs. The Siam Cement | CSP Steel vs. CP ALL 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |