Correlation Between PTT Public and Sunsweet Public
Can any of the company-specific risk be diversified away by investing in both PTT Public and Sunsweet Public 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 Sunsweet Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Sunsweet Public, you can compare the effects of market volatilities on PTT Public and Sunsweet Public 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 Sunsweet Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Sunsweet Public.
Diversification Opportunities for PTT Public and Sunsweet Public
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Sunsweet is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Sunsweet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunsweet 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 Sunsweet Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunsweet Public has no effect on the direction of PTT Public i.e., PTT Public and Sunsweet Public go up and down completely randomly.
Pair Corralation between PTT Public and Sunsweet Public
Assuming the 90 days trading horizon PTT Public is expected to generate 2.46 times less return on investment than Sunsweet Public. But when comparing it to its historical volatility, PTT Public is 2.14 times less risky than Sunsweet Public. It trades about 0.02 of its potential returns per unit of risk. Sunsweet Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Sunsweet Public on September 4, 2024 and sell it today you would earn a total of 35.00 from holding Sunsweet Public or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
PTT Public vs. Sunsweet Public
Performance |
| Timeline |
| PTT Public |
| Sunsweet Public |
PTT Public and Sunsweet Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Sunsweet Public
The main advantage of trading using opposite PTT Public and Sunsweet Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Sunsweet Public 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 Sunsweet Public will offset losses from the drop in Sunsweet Public'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 |
| Sunsweet Public vs. Muang Thai Insurance | Sunsweet Public vs. Indara Insurance Public | Sunsweet Public vs. Thai Nakarin Hospital | Sunsweet Public vs. Healthlead 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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