Correlation Between PTT Public and Siamgas
Can any of the company-specific risk be diversified away by investing in both PTT Public and Siamgas 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 Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Siamgas and Petrochemicals, you can compare the effects of market volatilities on PTT Public and Siamgas 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 Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Siamgas.
Diversification Opportunities for PTT Public and Siamgas
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Siamgas is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Siamgas and Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas and Petroche 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 Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas and Petroche has no effect on the direction of PTT Public i.e., PTT Public and Siamgas go up and down completely randomly.
Pair Corralation between PTT Public and Siamgas
Assuming the 90 days trading horizon PTT Public is expected to generate 577.06 times less return on investment than Siamgas. But when comparing it to its historical volatility, PTT Public is 82.13 times less risky than Siamgas. It trades about 0.01 of its potential returns per unit of risk. Siamgas and Petrochemicals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 734.00 in Siamgas and Petrochemicals on September 3, 2024 and sell it today you would lose (24.00) from holding Siamgas and Petrochemicals or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Siamgas and Petrochemicals
Performance |
| Timeline |
| PTT Public |
| Siamgas and Petroche |
PTT Public and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Siamgas
The main advantage of trading using opposite PTT Public and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' 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 |
| Siamgas vs. PTT Public | Siamgas vs. SCB X Public | Siamgas vs. The Siam Commercial | Siamgas vs. The Siam Cement |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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