Correlation Between PTT Public and Srithai Superware
Can any of the company-specific risk be diversified away by investing in both PTT Public and Srithai Superware 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 Srithai Superware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Srithai Superware Public, you can compare the effects of market volatilities on PTT Public and Srithai Superware 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 Srithai Superware. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Srithai Superware.
Diversification Opportunities for PTT Public and Srithai Superware
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Srithai is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Srithai Superware Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srithai Superware 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 Srithai Superware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srithai Superware Public has no effect on the direction of PTT Public i.e., PTT Public and Srithai Superware go up and down completely randomly.
Pair Corralation between PTT Public and Srithai Superware
Assuming the 90 days trading horizon PTT Public is expected to generate 57.41 times less return on investment than Srithai Superware. But when comparing it to its historical volatility, PTT Public is 42.7 times less risky than Srithai Superware. It trades about 0.03 of its potential returns per unit of risk. Srithai Superware Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 152.00 in Srithai Superware Public on August 29, 2024 and sell it today you would lose (20.00) from holding Srithai Superware Public or give up 13.16% 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. Srithai Superware Public
Performance |
| Timeline |
| PTT Public |
| Srithai Superware Public |
PTT Public and Srithai Superware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Srithai Superware
The main advantage of trading using opposite PTT Public and Srithai Superware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Srithai Superware 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 Srithai Superware will offset losses from the drop in Srithai Superware'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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