Correlation Between PTT Global and Perma-Fix Environmental
Can any of the company-specific risk be diversified away by investing in both PTT Global and Perma-Fix Environmental 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 Perma-Fix Environmental 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 Perma Fix Environmental Services, you can compare the effects of market volatilities on PTT Global and Perma-Fix Environmental 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 Perma-Fix Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and Perma-Fix Environmental.
Diversification Opportunities for PTT Global and Perma-Fix Environmental
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTT and Perma-Fix is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and Perma Fix Environmental Servic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perma Fix Environmental 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 Perma-Fix Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perma Fix Environmental has no effect on the direction of PTT Global i.e., PTT Global and Perma-Fix Environmental go up and down completely randomly.
Pair Corralation between PTT Global and Perma-Fix Environmental
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the Perma-Fix Environmental. In addition to that, PTT Global is 24.86 times more volatile than Perma Fix Environmental Services. It trades about -0.28 of its total potential returns per unit of risk. Perma Fix Environmental Services is currently generating about -0.24 per unit of volatility. If you would invest 965.00 in Perma Fix Environmental Services on December 4, 2024 and sell it today you would lose (200.00) from holding Perma Fix Environmental Services or give up 20.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
PTT Global Chemical vs. Perma Fix Environmental Servic
Performance |
Timeline |
PTT Global Chemical |
Perma Fix Environmental |
PTT Global and Perma-Fix Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PTT Global and Perma-Fix Environmental
The main advantage of trading using opposite PTT Global and Perma-Fix Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, Perma-Fix Environmental 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 Perma-Fix Environmental will offset losses from the drop in Perma-Fix Environmental's long position.PTT Global vs. NORWEGIAN AIR SHUT | PTT Global vs. Gladstone Investment | PTT Global vs. HK Electric Investments | PTT Global vs. Corsair Gaming |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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