Correlation Between PTT Global and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both PTT Global and AAPICO Hitech 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 AAPICO Hitech 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 AAPICO Hitech Public, you can compare the effects of market volatilities on PTT Global and AAPICO Hitech 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 AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and AAPICO Hitech.
Diversification Opportunities for PTT Global and AAPICO Hitech
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PTT and AAPICO is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and AAPICO Hitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPICO Hitech Public 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 AAPICO Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPICO Hitech Public has no effect on the direction of PTT Global i.e., PTT Global and AAPICO Hitech go up and down completely randomly.
Pair Corralation between PTT Global and AAPICO Hitech
Assuming the 90 days trading horizon PTT Global Chemical is expected to generate 34.35 times more return on investment than AAPICO Hitech. However, PTT Global is 34.35 times more volatile than AAPICO Hitech Public. It trades about 0.07 of its potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.05 per unit of risk. If you would invest 4,050 in PTT Global Chemical on September 3, 2024 and sell it today you would lose (1,525) from holding PTT Global Chemical or give up 37.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. AAPICO Hitech Public
Performance |
| Timeline |
| PTT Global Chemical |
| AAPICO Hitech Public |
PTT Global and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and AAPICO Hitech
The main advantage of trading using opposite PTT Global and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, AAPICO Hitech 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 AAPICO Hitech will offset losses from the drop in AAPICO Hitech'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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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