Correlation Between MACOM Technology and PTT Global

Can any of the company-specific risk be diversified away by investing in both MACOM 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 MACOM 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 MACOM Technology Solutions and PTT Global Chemical, you can compare the effects of market volatilities on MACOM 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 MACOM Technology with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and PTT Global.

Diversification Opportunities for MACOM Technology and PTT Global

0.74

Correlation Coefficient

MACOM Technology  PTT Global

Poor diversification

The 3 months correlation between MACOM and PTT is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions 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 MACOM 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 MACOM Technology Solutions 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 MACOM Technology i.e., MACOM Technology and PTT Global go up and down completely randomly.

Pair Corralation between MACOM Technology and PTT Global

Assuming the 90 days horizon MACOM Technology is expected to generate 1.13 times less return on investment than PTT Global. But when comparing it to its historical volatility, MACOM Technology Solutions is 1.55 times less risky than PTT Global. It trades about 0.18 of its potential returns per unit of risk. PTT Global Chemical is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  41.00  in PTT Global Chemical on April 24, 2025 and sell it today you would earn a total of  11.00  from holding PTT Global Chemical or generate 26.83% return on investment over 90 days.

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

MACOM Technology Solutions  vs.  PTT Global Chemical

MACOM Technology Sol

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MACOM Technology Solutions are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, MACOM Technology reported solid returns over the last few months and may actually be approaching a breakup point.

PTT Global Chemical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PTT Global Chemical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, PTT Global unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MACOM Technology and PTT Global

The main advantage of trading using opposite MACOM Technology and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MACOM 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.

The idea behind MACOM Technology Solutions and PTT Global Chemical 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.