Correlation Between PTT Public and Quality Construction
Can any of the company-specific risk be diversified away by investing in both PTT Public and Quality Construction 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 Quality Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Quality Construction Products, you can compare the effects of market volatilities on PTT Public and Quality Construction 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 Quality Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Quality Construction.
Diversification Opportunities for PTT Public and Quality Construction
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Quality is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Quality Construction Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quality Construction 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 Quality Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quality Construction has no effect on the direction of PTT Public i.e., PTT Public and Quality Construction go up and down completely randomly.
Pair Corralation between PTT Public and Quality Construction
Assuming the 90 days trading horizon PTT Public is expected to generate 0.83 times more return on investment than Quality Construction. However, PTT Public is 1.2 times less risky than Quality Construction. It trades about 0.03 of its potential returns per unit of risk. Quality Construction Products is currently generating about -0.31 per unit of risk. If you would invest 3,350 in PTT Public on August 25, 2024 and sell it today you would earn a total of 25.00 from holding PTT Public or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Quality Construction Products
Performance |
| Timeline |
| PTT Public |
| Quality Construction |
PTT Public and Quality Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Quality Construction
The main advantage of trading using opposite PTT Public and Quality Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Quality Construction 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 Quality Construction will offset losses from the drop in Quality Construction'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 |
| Quality Construction vs. PTT Public | Quality Construction vs. PTT Exploration and | Quality Construction vs. The Siam Cement | Quality Construction 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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