Correlation Between Thantawan Industry and PTT Public
Can any of the company-specific risk be diversified away by investing in both Thantawan Industry 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 Thantawan Industry and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thantawan Industry Public and PTT Public, you can compare the effects of market volatilities on Thantawan Industry 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 Thantawan Industry with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and PTT Public.
Diversification Opportunities for Thantawan Industry and PTT Public
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thantawan and PTT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Thantawan Industry 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 Thantawan Industry Public 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 Thantawan Industry i.e., Thantawan Industry and PTT Public go up and down completely randomly.
Pair Corralation between Thantawan Industry and PTT Public
Assuming the 90 days trading horizon Thantawan Industry Public is expected to generate 0.69 times more return on investment than PTT Public. However, Thantawan Industry Public is 1.44 times less risky than PTT Public. It trades about -0.11 of its potential returns per unit of risk. PTT Public is currently generating about -0.13 per unit of risk. If you would invest 2,900 in Thantawan Industry Public on August 27, 2024 and sell it today you would lose (50.00) from holding Thantawan Industry Public or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thantawan Industry Public vs. PTT Public
Performance |
| Timeline |
| Thantawan Industry Public |
| PTT Public |
Thantawan Industry and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thantawan Industry and PTT Public
The main advantage of trading using opposite Thantawan Industry and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thantawan Industry 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.| Thantawan Industry vs. PTT Public | Thantawan Industry vs. PTT Exploration and | Thantawan Industry vs. CP ALL Public | Thantawan Industry vs. Kasikornbank 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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