Correlation Between Tycoons Worldwide and PTT Public
Can any of the company-specific risk be diversified away by investing in both Tycoons Worldwide 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 Tycoons Worldwide and PTT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tycoons Worldwide Group and PTT Public, you can compare the effects of market volatilities on Tycoons Worldwide 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 Tycoons Worldwide with a short position of PTT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tycoons Worldwide and PTT Public.
Diversification Opportunities for Tycoons Worldwide and PTT Public
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tycoons and PTT is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tycoons Worldwide Group and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Tycoons Worldwide 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 Tycoons Worldwide Group 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 Tycoons Worldwide i.e., Tycoons Worldwide and PTT Public go up and down completely randomly.
Pair Corralation between Tycoons Worldwide and PTT Public
Assuming the 90 days trading horizon Tycoons Worldwide Group is expected to under-perform the PTT Public. But the stock apears to be less risky and, when comparing its historical volatility, Tycoons Worldwide Group is 1.15 times less risky than PTT Public. The stock trades about -0.4 of its potential returns per unit of risk. The PTT Public is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 3,300 in PTT Public on September 12, 2024 and sell it today you would lose (100.00) from holding PTT Public or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tycoons Worldwide Group vs. PTT Public
Performance |
| Timeline |
| Tycoons Worldwide |
| PTT Public |
Tycoons Worldwide and PTT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tycoons Worldwide and PTT Public
The main advantage of trading using opposite Tycoons Worldwide and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tycoons Worldwide 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.| Tycoons Worldwide vs. Thantawan Industry Public | Tycoons Worldwide vs. The Erawan Group | Tycoons Worldwide vs. Jay Mart Public | Tycoons Worldwide vs. Airports of Thailand |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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