Correlation Between Regional Container and PTT Public

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

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

Diversification Opportunities for Regional Container and PTT Public

0.6

Correlation Coefficient

Regional Container  PTT Public

Poor diversification

The 3 months correlation between Regional and PTT is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Regional Container Lines and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Regional Container 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 Regional Container Lines are associated (or correlated) with PTT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Public has no effect on the direction of Regional Container i.e., Regional Container and PTT Public go up and down completely randomly.

Pair Corralation between Regional Container and PTT Public

Assuming the 90 days trading horizon Regional Container Lines is expected to under-perform the PTT Public. In addition to that, Regional Container is 1.79 times more volatile than PTT Public. It trades about -0.09 of its total potential returns per unit of risk. PTT Public is currently generating about -0.03 per unit of volatility. If you would invest  3,225  in PTT Public on December 1, 2024 and sell it today you would lose (75.00) from holding PTT Public or give up 2.33% of portfolio value over 90 days.

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

Regional Container Lines  vs.  PTT Public

Regional Container Lines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regional Container Lines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

PTT Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTT Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, PTT 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 Regional Container and PTT Public

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

The idea behind Regional Container Lines and PTT 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.