Correlation Between Sekisui Chemical and PTT Global
Can any of the company-specific risk be diversified away by investing in both Sekisui Chemical 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 Sekisui Chemical and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekisui Chemical Co and PTT Global Chemical, you can compare the effects of market volatilities on Sekisui Chemical 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 Sekisui Chemical with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekisui Chemical and PTT Global.
Diversification Opportunities for Sekisui Chemical and PTT Global
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sekisui and PTT is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sekisui Chemical Co 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 Sekisui Chemical 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 Sekisui Chemical Co 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 Sekisui Chemical i.e., Sekisui Chemical and PTT Global go up and down completely randomly.
Pair Corralation between Sekisui Chemical and PTT Global
Assuming the 90 days horizon Sekisui Chemical Co is expected to generate 0.66 times more return on investment than PTT Global. However, Sekisui Chemical Co is 1.52 times less risky than PTT Global. It trades about 0.07 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.21 per unit of risk. If you would invest 1,500 in Sekisui Chemical Co on December 1, 2024 and sell it today you would earn a total of 120.00 from holding Sekisui Chemical Co 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 |
Sekisui Chemical Co vs. PTT Global Chemical
Performance |
Timeline |
Sekisui Chemical |
PTT Global Chemical |
Sekisui Chemical and PTT Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sekisui Chemical and PTT Global
The main advantage of trading using opposite Sekisui Chemical and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekisui Chemical 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.Sekisui Chemical vs. Treasury Wine Estates | Sekisui Chemical vs. CHINA TONTINE WINES | Sekisui Chemical vs. Guangdong Investment Limited | Sekisui Chemical vs. SmarTone Telecommunications Holdings |
PTT Global vs. Data Modul AG | PTT Global vs. FANDIFI TECHNOLOGY P | PTT Global vs. INFORMATION SVC GRP | PTT Global vs. Micron Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |