Correlation Between PTT Public and SCB X
Can any of the company-specific risk be diversified away by investing in both PTT Public and SCB X 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 SCB X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and SCB X Public, you can compare the effects of market volatilities on PTT Public and SCB X 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 SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and SCB X.
Diversification Opportunities for PTT Public and SCB X
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between PTT and SCB is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X 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 SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of PTT Public i.e., PTT Public and SCB X go up and down completely randomly.
Pair Corralation between PTT Public and SCB X
Assuming the 90 days trading horizon PTT Public is expected to under-perform the SCB X. In addition to that, PTT Public is 1.3 times more volatile than SCB X Public. It trades about -0.06 of its total potential returns per unit of risk. SCB X Public is currently generating about 0.05 per unit of volatility. If you would invest 11,350 in SCB X Public on August 24, 2024 and sell it today you would earn a total of 100.00 from holding SCB X Public or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. SCB X Public
Performance |
| Timeline |
| PTT Public |
| SCB X Public |
PTT Public and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and SCB X
The main advantage of trading using opposite PTT Public and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, SCB X 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 SCB X will offset losses from the drop in SCB X'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 |
| SCB X vs. Thai Energy Storage | SCB X vs. Royal Orchid Hotel | SCB X vs. Grand Canal Land | SCB X vs. PRG 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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