Correlation Between PTT Public and Siam Global
Can any of the company-specific risk be diversified away by investing in both PTT Public and Siam Global 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 Siam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Siam Global House, you can compare the effects of market volatilities on PTT Public and Siam Global 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 Siam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Siam Global.
Diversification Opportunities for PTT Public and Siam Global
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and Siam is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Siam Global House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Global House 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 Siam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Global House has no effect on the direction of PTT Public i.e., PTT Public and Siam Global go up and down completely randomly.
Pair Corralation between PTT Public and Siam Global
Assuming the 90 days trading horizon PTT Public is expected to generate 0.58 times more return on investment than Siam Global. However, PTT Public is 1.71 times less risky than Siam Global. It trades about 0.03 of its potential returns per unit of risk. Siam Global House is currently generating about -0.01 per unit of risk. If you would invest 2,949 in PTT Public on August 26, 2024 and sell it today you would earn a total of 426.00 from holding PTT Public or generate 14.45% 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. Siam Global House
Performance |
| Timeline |
| PTT Public |
| Siam Global House |
PTT Public and Siam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Siam Global
The main advantage of trading using opposite PTT Public and Siam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Siam Global 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 Siam Global will offset losses from the drop in Siam Global's long position.| PTT Public vs. PTT Oil and | PTT Public vs. Power Solution Technologies | PTT Public vs. Star Petroleum Refining | PTT Public vs. Prima Marine Public |
| Siam Global vs. SCB X Public | Siam Global vs. Kasikornbank Public | Siam Global vs. PTT Public | Siam Global 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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