Correlation Between PTT Exploration and Srithai Superware
Can any of the company-specific risk be diversified away by investing in both PTT Exploration and Srithai Superware 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 Exploration and Srithai Superware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Exploration and and Srithai Superware Public, you can compare the effects of market volatilities on PTT Exploration and Srithai Superware 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 Exploration with a short position of Srithai Superware. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Exploration and Srithai Superware.
Diversification Opportunities for PTT Exploration and Srithai Superware
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PTT and Srithai is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PTT Exploration and and Srithai Superware Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srithai Superware Public and PTT Exploration 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 Exploration and are associated (or correlated) with Srithai Superware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srithai Superware Public has no effect on the direction of PTT Exploration i.e., PTT Exploration and Srithai Superware go up and down completely randomly.
Pair Corralation between PTT Exploration and Srithai Superware
Assuming the 90 days trading horizon PTT Exploration and is expected to under-perform the Srithai Superware. But the stock apears to be less risky and, when comparing its historical volatility, PTT Exploration and is 64.7 times less risky than Srithai Superware. The stock trades about -0.09 of its potential returns per unit of risk. The Srithai Superware Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 127.00 in Srithai Superware Public on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Srithai Superware Public or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Exploration and vs. Srithai Superware Public
Performance |
| Timeline |
| PTT Exploration |
| Srithai Superware Public |
PTT Exploration and Srithai Superware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Exploration and Srithai Superware
The main advantage of trading using opposite PTT Exploration and Srithai Superware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Exploration position performs unexpectedly, Srithai Superware 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 Srithai Superware will offset losses from the drop in Srithai Superware's long position.| PTT Exploration vs. PTT Public | PTT Exploration vs. PTT Global Chemical | PTT Exploration vs. The Siam Cement | PTT Exploration vs. SCB X Public |
| Srithai Superware vs. Krung Thai Bank | Srithai Superware vs. Halcyon Technology Public | Srithai Superware vs. Charoen Pokphand Foods | Srithai Superware vs. 2S Metal 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |