Correlation Between AIM Industrial and CPN Retail
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By analyzing existing cross correlation between AIM Industrial Growth and CPN Retail Growth, you can compare the effects of market volatilities on AIM Industrial and CPN Retail 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 AIM Industrial with a short position of CPN Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM Industrial and CPN Retail.
Diversification Opportunities for AIM Industrial and CPN Retail
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AIM and CPN is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding AIM Industrial Growth and CPN Retail Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPN Retail Growth and AIM Industrial 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 AIM Industrial Growth are associated (or correlated) with CPN Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPN Retail Growth has no effect on the direction of AIM Industrial i.e., AIM Industrial and CPN Retail go up and down completely randomly.
Pair Corralation between AIM Industrial and CPN Retail
Assuming the 90 days trading horizon AIM Industrial is expected to generate 58.75 times less return on investment than CPN Retail. But when comparing it to its historical volatility, AIM Industrial Growth is 2.03 times less risky than CPN Retail. It trades about 0.0 of its potential returns per unit of risk. CPN Retail Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,190 in CPN Retail Growth on October 22, 2024 and sell it today you would earn a total of 30.00 from holding CPN Retail Growth or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM Industrial Growth vs. CPN Retail Growth
Performance |
| Timeline |
| AIM Industrial Growth |
| CPN Retail Growth |
AIM Industrial and CPN Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM Industrial and CPN Retail
The main advantage of trading using opposite AIM Industrial and CPN Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM Industrial position performs unexpectedly, CPN Retail 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 CPN Retail will offset losses from the drop in CPN Retail's long position.| AIM Industrial vs. Amata Summit Growth | AIM Industrial vs. WHA Premium Growth | AIM Industrial vs. Digital Telecommunications Infrastructure | AIM Industrial vs. Quality Houses Property |
| CPN Retail vs. Central Pattana Public | CPN Retail vs. Digital Telecommunications Infrastructure | CPN Retail vs. Impact Growth REIT | CPN Retail vs. WHA Premium Growth |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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