Correlation Between PTT Public and Millcon Steel
Can any of the company-specific risk be diversified away by investing in both PTT Public and Millcon 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 Millcon 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 Millcon Steel Public, you can compare the effects of market volatilities on PTT Public and Millcon 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 Millcon Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Millcon Steel.
Diversification Opportunities for PTT Public and Millcon Steel
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Millcon is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Millcon Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millcon Steel 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 Millcon Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millcon Steel Public has no effect on the direction of PTT Public i.e., PTT Public and Millcon Steel go up and down completely randomly.
Pair Corralation between PTT Public and Millcon Steel
Assuming the 90 days trading horizon PTT Public is expected to generate 43.66 times less return on investment than Millcon Steel. But when comparing it to its historical volatility, PTT Public is 42.97 times less risky than Millcon Steel. It trades about 0.03 of its potential returns per unit of risk. Millcon Steel Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Millcon Steel Public on August 29, 2024 and sell it today you would lose (67.00) from holding Millcon Steel Public or give up 87.01% 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. Millcon Steel Public
Performance |
| Timeline |
| PTT Public |
| Millcon Steel Public |
PTT Public and Millcon Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Millcon Steel
The main advantage of trading using opposite PTT Public and Millcon Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Millcon 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 Millcon Steel will offset losses from the drop in Millcon 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 |
| Millcon Steel vs. PTT Public | Millcon Steel vs. PTT Exploration and | Millcon Steel vs. CP ALL Public | Millcon Steel 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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