Correlation Between Bangkok Dusit and PTT Global
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit 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 Bangkok Dusit and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Dusit Medical and PTT Global Chemical, you can compare the effects of market volatilities on Bangkok Dusit 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 Bangkok Dusit with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and PTT Global.
Diversification Opportunities for Bangkok Dusit and PTT Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and PTT is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical 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 Bangkok Dusit 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 Bangkok Dusit Medical 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 Bangkok Dusit i.e., Bangkok Dusit and PTT Global go up and down completely randomly.
Pair Corralation between Bangkok Dusit and PTT Global
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the PTT Global. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 2.11 times less risky than PTT Global. The stock trades about -0.22 of its potential returns per unit of risk. The PTT Global Chemical is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,875 in PTT Global Chemical on September 15, 2024 and sell it today you would lose (395.00) from holding PTT Global Chemical or give up 13.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Bangkok Dusit Medical vs. PTT Global Chemical
Performance |
Timeline |
Bangkok Dusit Medical |
PTT Global Chemical |
Bangkok Dusit and PTT Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bangkok Dusit and PTT Global
The main advantage of trading using opposite Bangkok Dusit and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit 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.Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
PTT Global vs. PTT Public | PTT Global vs. PTT Exploration and | PTT Global vs. The Siam Cement | PTT Global vs. CP ALL 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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