Correlation Between Premier Technology and PTT Global
Can any of the company-specific risk be diversified away by investing in both Premier Technology 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 Premier Technology and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Technology Public and PTT Global Chemical, you can compare the effects of market volatilities on Premier Technology 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 Premier Technology with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Technology and PTT Global.
Diversification Opportunities for Premier Technology and PTT Global
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Premier and PTT is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Premier Technology Public 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 Premier Technology 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 Premier Technology Public 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 Premier Technology i.e., Premier Technology and PTT Global go up and down completely randomly.
Pair Corralation between Premier Technology and PTT Global
Assuming the 90 days horizon Premier Technology Public is expected to generate 0.67 times more return on investment than PTT Global. However, Premier Technology Public is 1.5 times less risky than PTT Global. It trades about 0.09 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.02 per unit of risk. If you would invest 510.00 in Premier Technology Public on February 3, 2024 and sell it today you would earn a total of 315.00 from holding Premier Technology Public or generate 61.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Premier Technology Public vs. PTT Global Chemical
Performance |
Timeline |
Premier Technology Public |
PTT Global Chemical |
Premier Technology and PTT Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Premier Technology and PTT Global
The main advantage of trading using opposite Premier Technology and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Technology 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.Premier Technology vs. Thanachart Capital Public | Premier Technology vs. Quality Houses Public | Premier Technology vs. Tipco Asphalt Public | Premier Technology vs. Synnex 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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