Correlation Between Panjawattana Plastic and G Steel

Can any of the company-specific risk be diversified away by investing in both Panjawattana Plastic and G Steel 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 Panjawattana Plastic and G Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Panjawattana Plastic and G Steel

0.0

Correlation Coefficient

Panjawattana Plastic  G Steel

Pay attention - limited upside

The 3 months correlation between Panjawattana and GSTEEL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Panjawattana Plastic Public and G Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Steel Public and Panjawattana Plastic 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 Panjawattana Plastic Public are associated (or correlated) with G Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Steel Public has no effect on the direction of Panjawattana Plastic i.e., Panjawattana Plastic and G Steel go up and down completely randomly.

Pair Corralation between Panjawattana Plastic and G Steel

If you would invest  9.00  in G Steel Public on April 25, 2025 and sell it today you would earn a total of  0.00  from holding G Steel Public or generate 0.0% return on investment over 90 days.

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

Panjawattana Plastic Public  vs.  G Steel Public

Panjawattana Plastic

Risk-Adjusted Performance

Very Weak

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

G Steel Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Steel Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, G Steel is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Panjawattana Plastic and G Steel

The main advantage of trading using opposite Panjawattana Plastic and G Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panjawattana Plastic position performs unexpectedly, G Steel 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 G Steel will offset losses from the drop in G Steel's long position.

The idea behind Panjawattana Plastic Public and G Steel 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.