Correlation Between Sri Trang and PTT Public
Can any of the company-specific risk be diversified away by investing in both Sri Trang and PTT 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 Sri Trang and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sri Trang Gloves and PTT Public, you can compare the effects of market volatilities on Sri Trang and PTT 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 Sri Trang with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sri Trang and PTT Public.
Diversification Opportunities for Sri Trang and PTT Public
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sri and PTT is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sri Trang Gloves and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Sri Trang 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 Sri Trang Gloves are associated (or correlated) with PTT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Public has no effect on the direction of Sri Trang i.e., Sri Trang and PTT Public go up and down completely randomly.
Pair Corralation between Sri Trang and PTT Public
Assuming the 90 days trading horizon Sri Trang Gloves is expected to generate 3.17 times more return on investment than PTT Public. However, Sri Trang is 3.17 times more volatile than PTT Public. It trades about 0.09 of its potential returns per unit of risk. PTT Public is currently generating about -0.02 per unit of risk. If you would invest 623.00 in Sri Trang Gloves on September 12, 2024 and sell it today you would earn a total of 467.00 from holding Sri Trang Gloves or generate 74.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sri Trang Gloves vs. PTT Public
Performance |
| Timeline |
| Sri Trang Gloves |
| PTT Public |
Sri Trang and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sri Trang and PTT Public
The main advantage of trading using opposite Sri Trang and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sri Trang position performs unexpectedly, PTT 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 PTT Public will offset losses from the drop in PTT Public's long position.| Sri Trang vs. Sri Trang Agro Industry | Sri Trang vs. Charoen Pokphand Foods | Sri Trang vs. Kasikornbank Public | Sri Trang vs. Bangkok Dusit Medical |
| PTT Public vs. PTT Exploration and | PTT Public vs. The Siam Cement | PTT Public vs. CP ALL Public | PTT Public vs. Airports of Thailand |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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