Correlation Between Ultra Clean and PTT Global
Can any of the company-specific risk be diversified away by investing in both Ultra Clean 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 Ultra Clean and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Clean Holdings and PTT Global Chemical, you can compare the effects of market volatilities on Ultra Clean 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 Ultra Clean with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and PTT Global.
Diversification Opportunities for Ultra Clean and PTT Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ultra and PTT is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings 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 Ultra Clean 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 Ultra Clean Holdings 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 Ultra Clean i.e., Ultra Clean and PTT Global go up and down completely randomly.
Pair Corralation between Ultra Clean and PTT Global
Assuming the 90 days horizon Ultra Clean Holdings is expected to generate 1.36 times more return on investment than PTT Global. However, Ultra Clean is 1.36 times more volatile than PTT Global Chemical. It trades about -0.15 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.27 per unit of risk. If you would invest 3,780 in Ultra Clean Holdings on December 4, 2024 and sell it today you would lose (1,420) from holding Ultra Clean Holdings or give up 37.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ultra Clean Holdings vs. PTT Global Chemical
Performance |
Timeline |
Ultra Clean Holdings |
PTT Global Chemical |
Ultra Clean and PTT Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ultra Clean and PTT Global
The main advantage of trading using opposite Ultra Clean and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean 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.Ultra Clean vs. AviChina Industry Technology | Ultra Clean vs. GREENX METALS LTD | Ultra Clean vs. Casio Computer CoLtd | Ultra Clean vs. Coeur Mining |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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