Correlation Between PTT Global and True Public
Can any of the company-specific risk be diversified away by investing in both PTT Global and True Public 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 True Public 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 True Public, you can compare the effects of market volatilities on PTT Global and True Public 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 True Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and True Public.
Diversification Opportunities for PTT Global and True Public
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between PTT and True is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and True Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True 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 True Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Public has no effect on the direction of PTT Global i.e., PTT Global and True Public go up and down completely randomly.
Pair Corralation between PTT Global and True Public
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the True Public. In addition to that, PTT Global is 1.26 times more volatile than True Public. It trades about -0.27 of its total potential returns per unit of risk. True Public is currently generating about 0.1 per unit of volatility. If you would invest 1,120 in True Public on November 3, 2024 and sell it today you would earn a total of 50.00 from holding True Public or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. True Public
Performance |
| Timeline |
| PTT Global Chemical |
| True Public |
PTT Global and True Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and True Public
The main advantage of trading using opposite PTT Global and True Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, True Public 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 True Public will offset losses from the drop in True Public'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 |
| True Public vs. Advanced Info Service | True Public vs. PTT Public | True Public vs. Charoen Pokphand Foods | True Public vs. SCB X 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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