Correlation Between PTT Public and Thai Nakarin
Can any of the company-specific risk be diversified away by investing in both PTT Public and Thai Nakarin 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 Thai Nakarin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and Thai Nakarin Hospital, you can compare the effects of market volatilities on PTT Public and Thai Nakarin 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 Thai Nakarin. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and Thai Nakarin.
Diversification Opportunities for PTT Public and Thai Nakarin
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and Thai is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Thai Nakarin Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Nakarin Hospital 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 Thai Nakarin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Nakarin Hospital has no effect on the direction of PTT Public i.e., PTT Public and Thai Nakarin go up and down completely randomly.
Pair Corralation between PTT Public and Thai Nakarin
Assuming the 90 days trading horizon PTT Public is expected to under-perform the Thai Nakarin. In addition to that, PTT Public is 1.31 times more volatile than Thai Nakarin Hospital. It trades about -0.17 of its total potential returns per unit of risk. Thai Nakarin Hospital is currently generating about 0.26 per unit of volatility. If you would invest 3,568 in Thai Nakarin Hospital on September 5, 2024 and sell it today you would earn a total of 157.00 from holding Thai Nakarin Hospital or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Public vs. Thai Nakarin Hospital
Performance |
| Timeline |
| PTT Public |
| Thai Nakarin Hospital |
PTT Public and Thai Nakarin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and Thai Nakarin
The main advantage of trading using opposite PTT Public and Thai Nakarin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, Thai Nakarin 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 Thai Nakarin will offset losses from the drop in Thai Nakarin'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 |
| Thai Nakarin vs. Vibhavadi Medical Center | Thai Nakarin vs. Ladprao General Hospital | Thai Nakarin vs. Ekachai Medical Care | Thai Nakarin vs. Chularat Hospital 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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