Correlation Between PTT Public and Global Green
Can any of the company-specific risk be diversified away by investing in both PTT Public and Global Green 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 Global Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Global Green Chemicals, you can compare the effects of market volatilities on PTT Public and Global Green 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 Global Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Global Green.
Diversification Opportunities for PTT Public and Global Green
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and Global is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Global Green Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Green Chemicals 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 Global Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Green Chemicals has no effect on the direction of PTT Public i.e., PTT Public and Global Green go up and down completely randomly.
Pair Corralation between PTT Public and Global Green
Assuming the 90 days trading horizon PTT Public is expected to under-perform the Global Green. But the stock apears to be less risky and, when comparing its historical volatility, PTT Public is 54.31 times less risky than Global Green. The stock trades about -0.01 of its potential returns per unit of risk. The Global Green Chemicals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,120 in Global Green Chemicals on September 12, 2024 and sell it today you would lose (658.00) from holding Global Green Chemicals or give up 58.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Global Green Chemicals
Performance |
| Timeline |
| PTT Public |
| Global Green Chemicals |
PTT Public and Global Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Global Green
The main advantage of trading using opposite PTT Public and Global Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Global Green 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 Global Green will offset losses from the drop in Global Green's long position.| PTT Public vs. Bangchak Public | PTT Public vs. IRPC Public | PTT Public vs. PTT Exploration and | PTT Public vs. Star Petroleum Refining |
| Global Green vs. Ichitan Group Public | Global Green vs. Indorama Ventures PCL | Global Green vs. BCPG Public | Global Green vs. IRPC 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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