Correlation Between IRPC Public and PTT Global

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

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

Diversification Opportunities for IRPC Public and PTT Global

-0.1

Correlation Coefficient

IRPC Public  PTT Global

Good diversification

The 3 months correlation between IRPC and PTT is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding IRPC 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 IRPC Public 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 IRPC 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 IRPC Public i.e., IRPC Public and PTT Global go up and down completely randomly.

Pair Corralation between IRPC Public and PTT Global

Assuming the 90 days trading horizon IRPC Public is expected to generate 3.74 times less return on investment than PTT Global. But when comparing it to its historical volatility, IRPC Public is 1.34 times less risky than PTT Global. It trades about 0.05 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  1,770  in PTT Global Chemical on April 25, 2025 and sell it today you would earn a total of  400.00  from holding PTT Global Chemical or generate 22.6% return on investment over 90 days.

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

IRPC Public  vs.  PTT Global Chemical

IRPC Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in IRPC Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, IRPC Public may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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. Despite somewhat conflicting fundamental drivers, PTT Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IRPC Public and PTT Global

The main advantage of trading using opposite IRPC Public and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRPC Public 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 IRPC Public 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.