Correlation Between TOA PAINT and PTT Public
Can any of the company-specific risk be diversified away by investing in both TOA PAINT 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 TOA PAINT and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOA PAINT and PTT Public, you can compare the effects of market volatilities on TOA PAINT 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 TOA PAINT with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOA PAINT and PTT Public.
Diversification Opportunities for TOA PAINT and PTT Public
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TOA and PTT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding TOA PAINT and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and TOA PAINT 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 TOA PAINT 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 TOA PAINT i.e., TOA PAINT and PTT Public go up and down completely randomly.
Pair Corralation between TOA PAINT and PTT Public
Assuming the 90 days trading horizon TOA PAINT is expected to under-perform the PTT Public. In addition to that, TOA PAINT is 4.6 times more volatile than PTT Public. It trades about -0.16 of its total potential returns per unit of risk. PTT Public is currently generating about -0.03 per unit of volatility. If you would invest 3,300 in PTT Public on September 4, 2024 and sell it today you would lose (75.00) from holding PTT Public or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOA PAINT vs. PTT Public
Performance |
| Timeline |
| TOA PAINT |
| PTT Public |
TOA PAINT and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOA PAINT and PTT Public
The main advantage of trading using opposite TOA PAINT and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOA PAINT 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.| TOA PAINT vs. PTT Public | TOA PAINT vs. The Siam Commercial | TOA PAINT vs. Airports of Thailand | TOA PAINT vs. CP ALL Public |
| 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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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