Correlation Between PTT Global and Check Point

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

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

Diversification Opportunities for PTT Global and Check Point

-0.57

Correlation Coefficient

PTT Global  Check Point

Excellent diversification

The 3 months correlation between PTT and Check is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software and PTT Global 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 PTT Global Chemical are associated (or correlated) with Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of PTT Global i.e., PTT Global and Check Point go up and down completely randomly.

Pair Corralation between PTT Global and Check Point

Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the Check Point. In addition to that, PTT Global is 39.93 times more volatile than Check Point Software. It trades about -0.17 of its total potential returns per unit of risk. Check Point Software is currently generating about 0.2 per unit of volatility. If you would invest  17,860  in Check Point Software on December 4, 2024 and sell it today you would earn a total of  3,370  from holding Check Point Software or generate 18.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

PTT Global Chemical  vs.  Check Point Software

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.

Check Point Software

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Check Point Software are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Check Point displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PTT Global and Check Point

The main advantage of trading using opposite PTT Global and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.

The idea behind PTT Global Chemical and Check Point Software 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.