Correlation Between PTT Global and SEKISUI CHEMICAL
Can any of the company-specific risk be diversified away by investing in both PTT Global and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL, you can compare the effects of market volatilities on PTT Global and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and SEKISUI CHEMICAL.
Diversification Opportunities for PTT Global and SEKISUI CHEMICAL
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and SEKISUI is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and SEKISUI CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEKISUI CHEMICAL has no effect on the direction of PTT Global i.e., PTT Global and SEKISUI CHEMICAL go up and down completely randomly.
Pair Corralation between PTT Global and SEKISUI CHEMICAL
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the SEKISUI CHEMICAL. In addition to that, PTT Global is 1.58 times more volatile than SEKISUI CHEMICAL. It trades about -0.21 of its total potential returns per unit of risk. SEKISUI CHEMICAL is currently generating about 0.07 per unit of volatility. If you would invest 1,500 in SEKISUI CHEMICAL on December 1, 2024 and sell it today you would earn a total of 120.00 from holding SEKISUI CHEMICAL or generate 8.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
PTT Global Chemical vs. SEKISUI CHEMICAL
Performance |
Timeline |
PTT Global Chemical |
SEKISUI CHEMICAL |
PTT Global and SEKISUI CHEMICAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PTT Global and SEKISUI CHEMICAL
The main advantage of trading using opposite PTT Global and SEKISUI CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, SEKISUI CHEMICAL 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 SEKISUI CHEMICAL will offset losses from the drop in SEKISUI CHEMICAL's long position.PTT Global vs. Data Modul AG | PTT Global vs. FANDIFI TECHNOLOGY P | PTT Global vs. INFORMATION SVC GRP | PTT Global vs. Micron Technology |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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