Correlation Between WillScot Mobile and PTT Global
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile 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 WillScot Mobile and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WillScot Mobile Mini and PTT Global Chemical, you can compare the effects of market volatilities on WillScot Mobile 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 WillScot Mobile with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and PTT Global.
Diversification Opportunities for WillScot Mobile and PTT Global
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WillScot and PTT is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini 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 WillScot Mobile 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 WillScot Mobile Mini 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 WillScot Mobile i.e., WillScot Mobile and PTT Global go up and down completely randomly.
Pair Corralation between WillScot Mobile and PTT Global
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to under-perform the PTT Global. In addition to that, WillScot Mobile is 1.76 times more volatile than PTT Global Chemical. It trades about -0.02 of its total potential returns per unit of risk. PTT Global Chemical is currently generating about 0.14 per unit of volatility. If you would invest 60.00 in PTT Global Chemical on August 25, 2024 and sell it today you would earn a total of 5.00 from holding PTT Global Chemical or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WillScot Mobile Mini vs. PTT Global Chemical
Performance |
| Timeline |
| WillScot Mobile Mini |
| PTT Global Chemical |
WillScot Mobile and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and PTT Global
The main advantage of trading using opposite WillScot Mobile and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile 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.| WillScot Mobile vs. CARSALESCOM | WillScot Mobile vs. Japan Post Insurance | WillScot Mobile vs. Ping An Insurance | WillScot Mobile vs. Zurich Insurance Group |
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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