Correlation Between PTT Public and Tipco Asphalt
Can any of the company-specific risk be diversified away by investing in both PTT Public and Tipco Asphalt 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 Tipco Asphalt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Tipco Asphalt Public, you can compare the effects of market volatilities on PTT Public and Tipco Asphalt 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 Tipco Asphalt. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Tipco Asphalt.
Diversification Opportunities for PTT Public and Tipco Asphalt
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between PTT and Tipco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Tipco Asphalt Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tipco Asphalt 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 Tipco Asphalt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tipco Asphalt Public has no effect on the direction of PTT Public i.e., PTT Public and Tipco Asphalt go up and down completely randomly.
Pair Corralation between PTT Public and Tipco Asphalt
Assuming the 90 days trading horizon PTT Public is expected to generate 0.83 times more return on investment than Tipco Asphalt. However, PTT Public is 1.21 times less risky than Tipco Asphalt. It trades about 0.04 of its potential returns per unit of risk. Tipco Asphalt Public is currently generating about 0.01 per unit of risk. If you would invest 2,854 in PTT Public on August 29, 2024 and sell it today you would earn a total of 446.00 from holding PTT Public or generate 15.63% 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. Tipco Asphalt Public
Performance |
| Timeline |
| PTT Public |
| Tipco Asphalt Public |
PTT Public and Tipco Asphalt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Tipco Asphalt
The main advantage of trading using opposite PTT Public and Tipco Asphalt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Tipco Asphalt 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 Tipco Asphalt will offset losses from the drop in Tipco Asphalt'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 |
| Tipco Asphalt vs. PTT Public | Tipco Asphalt vs. PTT Exploration and | Tipco Asphalt vs. CP ALL Public | Tipco Asphalt vs. Kasikornbank 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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