Correlation Between Sanyo Chemical and PTT Global
Can any of the company-specific risk be diversified away by investing in both Sanyo Chemical 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 Sanyo Chemical and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanyo Chemical Industries and PTT Global Chemical, you can compare the effects of market volatilities on Sanyo Chemical 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 Sanyo Chemical with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanyo Chemical and PTT Global.
Diversification Opportunities for Sanyo Chemical and PTT Global
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanyo and PTT is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sanyo Chemical Industries 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 Sanyo Chemical 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 Sanyo Chemical Industries 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 Sanyo Chemical i.e., Sanyo Chemical and PTT Global go up and down completely randomly.
Pair Corralation between Sanyo Chemical and PTT Global
Assuming the 90 days horizon Sanyo Chemical Industries is expected to under-perform the PTT Global. But the stock apears to be less risky and, when comparing its historical volatility, Sanyo Chemical Industries is 3.59 times less risky than PTT Global. The stock trades about -0.09 of its potential returns per unit of risk. The PTT Global Chemical is currently generating about 0.14 of returns per unit of risk over similar time horizon. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanyo Chemical Industries vs. PTT Global Chemical
Performance |
| Timeline |
| Sanyo Chemical Industries |
| PTT Global Chemical |
Sanyo Chemical and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanyo Chemical and PTT Global
The main advantage of trading using opposite Sanyo Chemical and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanyo Chemical 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.| Sanyo Chemical vs. Air Liquide SA | Sanyo Chemical vs. PPG Industries | Sanyo Chemical vs. Albemarle | Sanyo Chemical vs. Superior Plus Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |