Correlation Between Fair Isaac and PTT Global

Can any of the company-specific risk be diversified away by investing in both Fair Isaac 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 Fair Isaac and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fair Isaac Corp and PTT Global Chemical, you can compare the effects of market volatilities on Fair Isaac 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 Fair Isaac with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Isaac and PTT Global.

Diversification Opportunities for Fair Isaac and PTT Global

0.69

Correlation Coefficient

Fair Isaac  PTT Global

Poor diversification

The 3 months correlation between Fair and PTT is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac Corp 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 Fair Isaac 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 Fair Isaac Corp 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 Fair Isaac i.e., Fair Isaac and PTT Global go up and down completely randomly.

Pair Corralation between Fair Isaac and PTT Global

Assuming the 90 days trading horizon Fair Isaac Corp is expected to generate 0.74 times more return on investment than PTT Global. However, Fair Isaac Corp is 1.35 times less risky than PTT Global. It trades about -0.06 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.15 per unit of risk. If you would invest  193,800  in Fair Isaac Corp on December 29, 2024 and sell it today you would lose (19,400) from holding Fair Isaac Corp or give up 10.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Fair Isaac Corp  vs.  PTT Global Chemical

Fair Isaac Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fair Isaac Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

PTT Global Chemical

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTT Global Chemical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Fair Isaac and PTT Global

The main advantage of trading using opposite Fair Isaac and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Isaac 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.

The idea behind Fair Isaac Corp and PTT Global Chemical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.