Correlation Between COUSINS PTIES and PTT Global
Can any of the company-specific risk be diversified away by investing in both COUSINS PTIES 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 COUSINS PTIES and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COUSINS PTIES INC and PTT Global Chemical, you can compare the effects of market volatilities on COUSINS PTIES 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 COUSINS PTIES with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of COUSINS PTIES and PTT Global.
Diversification Opportunities for COUSINS PTIES and PTT Global
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between COUSINS and PTT is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding COUSINS PTIES INC 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 COUSINS PTIES 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 COUSINS PTIES INC 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 COUSINS PTIES i.e., COUSINS PTIES and PTT Global go up and down completely randomly.
Pair Corralation between COUSINS PTIES and PTT Global
Assuming the 90 days trading horizon COUSINS PTIES INC is expected to generate 0.48 times more return on investment than PTT Global. However, COUSINS PTIES INC is 2.07 times less risky than PTT Global. It trades about 0.01 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.27 per unit of risk. If you would invest 2,889 in COUSINS PTIES INC on December 4, 2024 and sell it today you would earn a total of 11.00 from holding COUSINS PTIES INC or generate 0.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
COUSINS PTIES INC vs. PTT Global Chemical
Performance |
Timeline |
COUSINS PTIES INC |
PTT Global Chemical |
COUSINS PTIES and PTT Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COUSINS PTIES and PTT Global
The main advantage of trading using opposite COUSINS PTIES and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COUSINS PTIES 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.COUSINS PTIES vs. SmarTone Telecommunications Holdings | COUSINS PTIES vs. ECHO INVESTMENT ZY | COUSINS PTIES vs. Scottish Mortgage Investment | COUSINS PTIES vs. INTERSHOP Communications Aktiengesellschaft |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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