Correlation Between PTT Global and Advanced Info
Can any of the company-specific risk be diversified away by investing in both PTT Global and Advanced Info 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 Global and Advanced Info into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Global Chemical and Advanced Info Service, you can compare the effects of market volatilities on PTT Global and Advanced Info 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 Global with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Advanced Info.
Diversification Opportunities for PTT Global and Advanced Info
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between PTT and Advanced is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service and PTT Global 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 Global Chemical are associated (or correlated) with Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of PTT Global i.e., PTT Global and Advanced Info go up and down completely randomly.
Pair Corralation between PTT Global and Advanced Info
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 69.95 times more return on investment than Advanced Info. However, PTT Global is 69.95 times more volatile than Advanced Info Service. It trades about 0.11 of its potential returns per unit of risk. Advanced Info Service is currently generating about 0.14 per unit of risk. If you would invest 2,500 in PTT Global Chemical on August 30, 2024 and sell it today you would earn a total of 0.00 from holding PTT Global Chemical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. Advanced Info Service
Performance |
| Timeline |
| PTT Global Chemical |
| Advanced Info Service |
PTT Global and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and Advanced Info
The main advantage of trading using opposite PTT Global and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Advanced Info 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 Advanced Info will offset losses from the drop in Advanced Info's long position.| PTT Global vs. PTT Public | PTT Global vs. PTT Exploration and | PTT Global vs. The Siam Cement | PTT Global vs. CP ALL Public |
| Advanced Info vs. PTT Public | Advanced Info vs. CP ALL Public | Advanced Info vs. Kasikornbank Public | Advanced Info vs. Bangkok Bank 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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