Correlation Between PTT Public and Permsin Steel
Can any of the company-specific risk be diversified away by investing in both PTT Public and Permsin 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 Permsin 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 Permsin Steel Works, you can compare the effects of market volatilities on PTT Public and Permsin 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 Permsin Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Permsin Steel.
Diversification Opportunities for PTT Public and Permsin Steel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PTT and Permsin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Permsin Steel Works in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Permsin Steel Works 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 Permsin Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Permsin Steel Works has no effect on the direction of PTT Public i.e., PTT Public and Permsin Steel go up and down completely randomly.
Pair Corralation between PTT Public and Permsin Steel
Assuming the 90 days trading horizon PTT Public is expected to generate 64.06 times less return on investment than Permsin Steel. But when comparing it to its historical volatility, PTT Public is 44.07 times less risky than Permsin Steel. It trades about 0.03 of its potential returns per unit of risk. Permsin Steel Works is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 123.00 in Permsin Steel Works on September 4, 2024 and sell it today you would lose (60.00) from holding Permsin Steel Works or give up 48.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.77% |
| Values | Daily Returns |
PTT Public vs. Permsin Steel Works
Performance |
| Timeline |
| PTT Public |
| Permsin Steel Works |
PTT Public and Permsin Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Permsin Steel
The main advantage of trading using opposite PTT Public and Permsin Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Permsin 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 Permsin Steel will offset losses from the drop in Permsin 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 |
| Permsin Steel vs. PTT Public | Permsin Steel vs. PTT Exploration and | Permsin Steel vs. The Siam Cement | Permsin Steel vs. CP ALL 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |