Correlation Between PTT Public and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both PTT Public and Rojana Industrial 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 Rojana Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Rojana Industrial Park, you can compare the effects of market volatilities on PTT Public and Rojana Industrial 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 Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Rojana Industrial.
Diversification Opportunities for PTT Public and Rojana Industrial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PTT and Rojana is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park 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 Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of PTT Public i.e., PTT Public and Rojana Industrial go up and down completely randomly.
Pair Corralation between PTT Public and Rojana Industrial
Assuming the 90 days trading horizon PTT Public is expected to generate 1.24 times less return on investment than Rojana Industrial. But when comparing it to its historical volatility, PTT Public is 1.96 times less risky than Rojana Industrial. It trades about 0.02 of its potential returns per unit of risk. Rojana Industrial Park is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Rojana Industrial Park on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Rojana Industrial Park or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Rojana Industrial Park
Performance |
| Timeline |
| PTT Public |
| Rojana Industrial Park |
PTT Public and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Rojana Industrial
The main advantage of trading using opposite PTT Public and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Rojana Industrial 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 Rojana Industrial will offset losses from the drop in Rojana Industrial'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 |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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