Correlation Between PTT Public and Ratch Group
Can any of the company-specific risk be diversified away by investing in both PTT Public and Ratch Group 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 Ratch Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Ratch Group Public, you can compare the effects of market volatilities on PTT Public and Ratch Group 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 Ratch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Ratch Group.
Diversification Opportunities for PTT Public and Ratch Group
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Ratch is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Ratch Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratch Group 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 Ratch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratch Group Public has no effect on the direction of PTT Public i.e., PTT Public and Ratch Group go up and down completely randomly.
Pair Corralation between PTT Public and Ratch Group
Assuming the 90 days trading horizon PTT Public is expected to generate 0.62 times more return on investment than Ratch Group. However, PTT Public is 1.61 times less risky than Ratch Group. It trades about -0.16 of its potential returns per unit of risk. Ratch Group Public is currently generating about -0.12 per unit of risk. If you would invest 3,350 in PTT Public on September 1, 2024 and sell it today you would lose (125.00) from holding PTT Public or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PTT Public vs. Ratch Group Public
Performance |
| Timeline |
| PTT Public |
| Ratch Group Public |
PTT Public and Ratch Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Ratch Group
The main advantage of trading using opposite PTT Public and Ratch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Ratch Group 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 Ratch Group will offset losses from the drop in Ratch Group'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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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