Correlation Between Tycoons Worldwide and PTT Public

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

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

Diversification Opportunities for Tycoons Worldwide and PTT Public

-0.22

Correlation Coefficient

Tycoons Worldwide  PTT Public

Very good diversification

The 3 months correlation between Tycoons and PTT is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tycoons Worldwide Group and PTT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT Public and Tycoons Worldwide 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 Tycoons Worldwide Group 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 Tycoons Worldwide i.e., Tycoons Worldwide and PTT Public go up and down completely randomly.

Pair Corralation between Tycoons Worldwide and PTT Public

Assuming the 90 days trading horizon Tycoons Worldwide Group is expected to under-perform the PTT Public. In addition to that, Tycoons Worldwide is 1.53 times more volatile than PTT Public. It trades about -0.03 of its total potential returns per unit of risk. PTT Public is currently generating about 0.07 per unit of volatility. If you would invest  3,046  in PTT Public on December 27, 2024 and sell it today you would earn a total of  204.00  from holding PTT Public or generate 6.7% return on investment over 90 days.

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

Tycoons Worldwide Group  vs.  PTT Public

Tycoons Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tycoons Worldwide Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Tycoons Worldwide is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

PTT Public

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PTT Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, PTT Public may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Tycoons Worldwide and PTT Public

The main advantage of trading using opposite Tycoons Worldwide and PTT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tycoons Worldwide 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 Tycoons Worldwide Group 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 CEOs Directory module to screen CEOs from public companies around the world.