Correlation Between TYSON FOODS and PTT Global
Can any of the company-specific risk be diversified away by investing in both TYSON FOODS and PTT Global 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 TYSON FOODS and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TYSON FOODS A and PTT Global Chemical, you can compare the effects of market volatilities on TYSON FOODS and PTT Global 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 TYSON FOODS with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of TYSON FOODS and PTT Global.
Diversification Opportunities for TYSON FOODS and PTT Global
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TYSON and PTT is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding TYSON FOODS A and PTT Global Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Global Chemical and TYSON FOODS 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 TYSON FOODS A are associated (or correlated) with PTT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Global Chemical has no effect on the direction of TYSON FOODS i.e., TYSON FOODS and PTT Global go up and down completely randomly.
Pair Corralation between TYSON FOODS and PTT Global
Assuming the 90 days trading horizon TYSON FOODS A is expected to under-perform the PTT Global. But the stock apears to be less risky and, when comparing its historical volatility, TYSON FOODS A is 3.45 times less risky than PTT Global. The stock trades about -0.35 of its potential returns per unit of risk. The PTT Global Chemical is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 63.00 in PTT Global Chemical on October 15, 2024 and sell it today you would lose (3.00) from holding PTT Global Chemical or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TYSON FOODS A vs. PTT Global Chemical
Performance |
| Timeline |
| TYSON FOODS A |
| PTT Global Chemical |
TYSON FOODS and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TYSON FOODS and PTT Global
The main advantage of trading using opposite TYSON FOODS and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TYSON FOODS position performs unexpectedly, PTT Global 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 Global will offset losses from the drop in PTT Global's long position.| TYSON FOODS vs. Xiwang Special Steel | TYSON FOODS vs. JLF INVESTMENT | TYSON FOODS vs. Dentsply Sirona | TYSON FOODS vs. MEDCAW INVESTMENTS LS 01 |
| PTT Global vs. Astral Foods Limited | PTT Global vs. DAIRY FARM INTL | PTT Global vs. TYSON FOODS A | PTT Global vs. WIMFARM SA EO |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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