Correlation Between PTT Public and UAC Global
Can any of the company-specific risk be diversified away by investing in both PTT Public and UAC Global 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 UAC Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Public and UAC Global Public, you can compare the effects of market volatilities on PTT Public and UAC Global 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 UAC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and UAC Global.
Diversification Opportunities for PTT Public and UAC Global
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PTT and UAC is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and UAC Global Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UAC Global 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 UAC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UAC Global Public has no effect on the direction of PTT Public i.e., PTT Public and UAC Global go up and down completely randomly.
Pair Corralation between PTT Public and UAC Global
Assuming the 90 days trading horizon PTT Public is expected to generate 0.78 times more return on investment than UAC Global. However, PTT Public is 1.29 times less risky than UAC Global. It trades about 0.01 of its potential returns per unit of risk. UAC Global Public is currently generating about 0.01 per unit of risk. If you would invest 3,327 in PTT Public on August 27, 2024 and sell it today you would earn a total of 48.00 from holding PTT Public or generate 1.44% 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. UAC Global Public
Performance |
| Timeline |
| PTT Public |
| UAC Global Public |
PTT Public and UAC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Public and UAC Global
The main advantage of trading using opposite PTT Public and UAC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public position performs unexpectedly, UAC Global 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 UAC Global will offset losses from the drop in UAC Global's long position.| PTT Public vs. PTT Oil and | PTT Public vs. Power Solution Technologies | PTT Public vs. Star Petroleum Refining | PTT Public vs. Prima Marine Public |
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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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