On SET market correlation. What it may mean.

On SET market correlation. What it may mean when a stock moves closely with the SET index, or not.

It worth noting how PPM of late seems to move closely with the overall market. I.e. if the SET corrects, so does PPM -and visa versa.  There seems to be a close, mkt. to PPM, corelation just now. This is certainly not true with all stocks.  Look at SMD for example, the SET corrected yet SMD is at similar levels as before (SMD went XD 0.50 dividend along with a 20 to 1 stock dividend yesterday, March 15th).   

A graphie tech analysis viewer would point out that PPM did not retest or exceed its old recent high price when it moved back up to near 3.78 on March 9th-11. i.e. not such a good sign from a graph viewpoint.   But this is no doubt was due to the emerged Ukraine/Russia war which made the SET correct during this same time.  Over the years I often sensed its a good sign when a good stock price jumps up quickly when the market rises -as it likely means more money wants to move into!   PPM is a core stock selection here since price 3.02 earlier this year.

Of course from a portfolio standpoint its always good to have a few mkt. non-correlated stocks -as it reduces the volatility of the mkt. value of one's portfolio.  DIF is a good exmple, as it hardlly got effected of the recent mkt. sell off.  Note also yesterday how STA/STGT seems to be alive again, evenwhile the market dropped.  I note how STA for example has a beta of only 0.45, meaning its of late not correlated to the SET.   STGT has a beta of 0.16,  vs. PPM has a strong beta of 1.04 -which means its very SET correlated.    BTW,  SMD has a beta of just 0.31!   The SET beta of course is always set at 1.00.   Rated beta's, change over time of course and when comparing these it should be consistent within the same time frame.  Here I looked at year to date 2022 beta's.  You can see beta's for every SET/MAI listed stock, at the SET "Company Summary" link, look for 'Statistics".  Post looking-up "Companies/Securities in Focus", for any stock by inserting the stock symbol in at the official SET web site.

Of course obviously its not real time perfect, often it takes a bit of time for any stock to react to the market even if it has a very close correlation, or say Beta of 1.00 or above.  In portfolio management we learn its always good to own some high and/along with low correlated beta stocks, as mentioned as this reduces portfolio volatility.  "The proof is in the podding", so lets see if/how PPM reacts in time, when there is a SET bounce or not. 

Best Regards,