Correlation Between After You and CP ALL
Can any of the company-specific risk be diversified away by investing in both After You and CP ALL 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 After You and CP ALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between After You Public and CP ALL Public, you can compare the effects of market volatilities on After You and CP ALL 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 After You with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of After You and CP ALL.
Diversification Opportunities for After You and CP ALL
Weak diversification
The 3 months correlation between After and CPALL is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding After You Public and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and After You 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 After You Public are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of After You i.e., After You and CP ALL go up and down completely randomly.
Pair Corralation between After You and CP ALL
Assuming the 90 days horizon After You Public is expected to generate 1.87 times more return on investment than CP ALL. However, After You is 1.87 times more volatile than CP ALL Public. It trades about 0.21 of its potential returns per unit of risk. CP ALL Public is currently generating about -0.06 per unit of risk. If you would invest 1,010 in After You Public on August 25, 2024 and sell it today you would earn a total of 90.00 from holding After You Public or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
After You Public vs. CP ALL Public
Performance |
| Timeline |
| After You Public |
| CP ALL Public |
After You and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with After You and CP ALL
The main advantage of trading using opposite After You and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if After You position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| After You vs. CP ALL Public | After You vs. BTS Group Holdings | After You vs. Minor International Public | After You vs. Airports of Thailand |
| CP ALL vs. Airports of Thailand | CP ALL vs. PTT Public | CP ALL vs. Bangkok Dusit Medical | CP ALL vs. Kasikornbank Public |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |