Correlation Between Japan Airlines and PTT Global
Can any of the company-specific risk be diversified away by investing in both Japan Airlines 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 Japan Airlines and PTT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Airlines Ltd and PTT Global Chemical, you can compare the effects of market volatilities on Japan Airlines 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 Japan Airlines with a short position of PTT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Airlines and PTT Global.
Diversification Opportunities for Japan Airlines and PTT Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Japan and PTT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Japan Airlines Ltd 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 Japan Airlines 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 Japan Airlines Ltd 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 Japan Airlines i.e., Japan Airlines and PTT Global go up and down completely randomly.
Pair Corralation between Japan Airlines and PTT Global
Assuming the 90 days horizon Japan Airlines Ltd is expected to generate 0.37 times more return on investment than PTT Global. However, Japan Airlines Ltd is 2.72 times less risky than PTT Global. It trades about -0.15 of its potential returns per unit of risk. PTT Global Chemical is currently generating about -0.12 per unit of risk. If you would invest 1,054 in Japan Airlines Ltd on September 7, 2025 and sell it today you would lose (146.00) from holding Japan Airlines Ltd or give up 13.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Japan Airlines Ltd vs. PTT Global Chemical
Performance |
| Timeline |
| Japan Airlines |
| PTT Global Chemical |
Japan Airlines and PTT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Airlines and PTT Global
The main advantage of trading using opposite Japan Airlines and PTT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Airlines 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.| Japan Airlines vs. Delta Air Lines | Japan Airlines vs. Ryanair Holdings PLC | Japan Airlines vs. Air China Limited | Japan Airlines vs. Air China Ltd |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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