Correlation Between PTT Public and Tirathai Public

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

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

Diversification Opportunities for PTT Public and Tirathai Public

-0.5

Correlation Coefficient

PTT Public  Tirathai Public

Very good diversification

The 3 months correlation between PTT and Tirathai is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and Tirathai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tirathai Public and PTT Public 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 Public are associated (or correlated) with Tirathai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tirathai Public has no effect on the direction of PTT Public i.e., PTT Public and Tirathai Public go up and down completely randomly.

Pair Corralation between PTT Public and Tirathai Public

Assuming the 90 days trading horizon PTT Public is expected to generate 6.02 times less return on investment than Tirathai Public. But when comparing it to its historical volatility, PTT Public is 2.46 times less risky than Tirathai Public. It trades about 0.02 of its potential returns per unit of risk. Tirathai Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  265.00  in Tirathai Public on October 7, 2024 and sell it today you would earn a total of  99.00  from holding Tirathai Public or generate 37.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

PTT Public  vs.  Tirathai Public

PTT Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PTT Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, PTT Public is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Tirathai Public

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tirathai Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Tirathai Public is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with PTT Public and Tirathai Public

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

The idea behind PTT Public and Tirathai Public 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.