Correlation Between PTT Public and Lam Soon
Can any of the company-specific risk be diversified away by investing in both PTT Public and Lam Soon 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 Lam Soon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Lam Soon Public, you can compare the effects of market volatilities on PTT Public and Lam Soon 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 Lam Soon. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Lam Soon.
Diversification Opportunities for PTT Public and Lam Soon
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTT and Lam is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Lam Soon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lam Soon Public 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 Lam Soon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lam Soon Public has no effect on the direction of PTT Public i.e., PTT Public and Lam Soon go up and down completely randomly.
Pair Corralation between PTT Public and Lam Soon
Assuming the 90 days trading horizon PTT Public is expected to under-perform the Lam Soon. In addition to that, PTT Public is 1.07 times more volatile than Lam Soon Public. It trades about -0.14 of its total potential returns per unit of risk. Lam Soon Public is currently generating about -0.07 per unit of volatility. If you would invest 505.00 in Lam Soon Public on September 12, 2024 and sell it today you would lose (7.00) from holding Lam Soon Public or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Lam Soon Public
Performance |
| Timeline |
| PTT Public |
| Lam Soon Public |
PTT Public and Lam Soon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Lam Soon
The main advantage of trading using opposite PTT Public and Lam Soon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Lam Soon 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 Lam Soon will offset losses from the drop in Lam Soon'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 |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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