Correlation Between PTT Public and Land
Can any of the company-specific risk be diversified away by investing in both PTT Public and Land 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 Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Land and Houses, you can compare the effects of market volatilities on PTT Public and Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Land.
Diversification Opportunities for PTT Public and Land
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PTT and Land is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of PTT Public i.e., PTT Public and Land go up and down completely randomly.
Pair Corralation between PTT Public and Land
Assuming the 90 days trading horizon PTT Public is expected to generate 110.52 times less return on investment than Land. But when comparing it to its historical volatility, PTT Public is 52.37 times less risky than Land. It trades about 0.02 of its potential returns per unit of risk. Land and Houses is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 787.00 in Land and Houses on August 28, 2024 and sell it today you would lose (227.00) from holding Land and Houses or give up 28.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Land and Houses
Performance |
| Timeline |
| PTT Public |
| Land and Houses |
PTT Public and Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Land
The main advantage of trading using opposite PTT Public and Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Land 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 Land will offset losses from the drop in Land'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 |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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