Correlation Between PTT Public and TISCO Financial
Can any of the company-specific risk be diversified away by investing in both PTT Public and TISCO Financial 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 TISCO Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and TISCO Financial Group, you can compare the effects of market volatilities on PTT Public and TISCO Financial 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 TISCO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and TISCO Financial.
Diversification Opportunities for PTT Public and TISCO Financial
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTT and TISCO is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and TISCO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TISCO Financial Group 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 TISCO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TISCO Financial Group has no effect on the direction of PTT Public i.e., PTT Public and TISCO Financial go up and down completely randomly.
Pair Corralation between PTT Public and TISCO Financial
Assuming the 90 days trading horizon PTT Public is expected to generate 2.4 times more return on investment than TISCO Financial. However, PTT Public is 2.4 times more volatile than TISCO Financial Group. It trades about 0.19 of its potential returns per unit of risk. TISCO Financial Group is currently generating about 0.07 per unit of risk. If you would invest 3,075 in PTT Public on November 27, 2024 and sell it today you would earn a total of 150.00 from holding PTT Public or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. TISCO Financial Group
Performance |
| Timeline |
| PTT Public |
| TISCO Financial Group |
PTT Public and TISCO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and TISCO Financial
The main advantage of trading using opposite PTT Public and TISCO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, TISCO Financial 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 TISCO Financial will offset losses from the drop in TISCO Financial'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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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