Correlation Between Rojana Industrial and PTT Global
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial and PTT Global 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 Rojana Industrial and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rojana Industrial Park and PTT Global Chemical, you can compare the effects of market volatilities on Rojana Industrial and PTT Global 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 Rojana Industrial with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and PTT Global.
Diversification Opportunities for Rojana Industrial and PTT Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rojana and PTT is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and PTT Global Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Global Chemical and Rojana Industrial 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 Rojana Industrial Park are associated (or correlated) with PTT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT Global Chemical has no effect on the direction of Rojana Industrial i.e., Rojana Industrial and PTT Global go up and down completely randomly.
Pair Corralation between Rojana Industrial and PTT Global
Assuming the 90 days trading horizon Rojana Industrial Park is expected to generate 0.6 times more return on investment than PTT Global. However, Rojana Industrial Park is 1.67 times less risky than PTT Global. It trades about -0.13 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.26 per unit of risk. If you would invest 650.00 in Rojana Industrial Park on December 2, 2024 and sell it today you would lose (85.00) from holding Rojana Industrial Park or give up 13.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Rojana Industrial Park vs. PTT Global Chemical
Performance |
Timeline |
Rojana Industrial Park |
PTT Global Chemical |
Rojana Industrial and PTT Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rojana Industrial and PTT Global
The main advantage of trading using opposite Rojana Industrial and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial position performs unexpectedly, PTT Global 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 Global will offset losses from the drop in PTT Global's long position.Rojana Industrial vs. Nova Organic PCL | Rojana Industrial vs. Mandarin Hotel Public | Rojana Industrial vs. S Hotels and | Rojana Industrial vs. Cal Comp Electronics Public |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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