Correlation Between PTT Global and WHA Public
Can any of the company-specific risk be diversified away by investing in both PTT Global and WHA 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 WHA 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 WHA Public, you can compare the effects of market volatilities on PTT Global and WHA 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 WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and WHA Public.
Diversification Opportunities for PTT Global and WHA Public
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PTT and WHA is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA 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 WHA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Public has no effect on the direction of PTT Global i.e., PTT Global and WHA Public go up and down completely randomly.
Pair Corralation between PTT Global and WHA Public
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the WHA Public. In addition to that, PTT Global is 1.37 times more volatile than WHA Public. It trades about -0.26 of its total potential returns per unit of risk. WHA Public is currently generating about -0.31 per unit of volatility. If you would invest 550.00 in WHA Public on November 4, 2024 and sell it today you would lose (74.00) from holding WHA Public or give up 13.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. WHA Public
Performance |
| Timeline |
| PTT Global Chemical |
| WHA Public |
PTT Global and WHA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and WHA Public
The main advantage of trading using opposite PTT Global and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, WHA 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 WHA Public will offset losses from the drop in WHA 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 |
| WHA Public vs. Bangkok Dusit Medical | WHA Public vs. Land and Houses | WHA Public vs. BTS Group Holdings | WHA Public vs. Bangkok Expressway and |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |