Correlation Between B GRIMM and Charoen Pokphand
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By analyzing existing cross correlation between B GRIMM POWER and Charoen Pokphand Foods, you can compare the effects of market volatilities on B GRIMM and Charoen Pokphand 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 B GRIMM with a short position of Charoen Pokphand. Check out your portfolio center. Please also check ongoing floating volatility patterns of B GRIMM and Charoen Pokphand.
Diversification Opportunities for B GRIMM and Charoen Pokphand
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BGRIM-R and Charoen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding B GRIMM POWER and Charoen Pokphand Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charoen Pokphand Foods and B GRIMM 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 B GRIMM POWER are associated (or correlated) with Charoen Pokphand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charoen Pokphand Foods has no effect on the direction of B GRIMM i.e., B GRIMM and Charoen Pokphand go up and down completely randomly.
Pair Corralation between B GRIMM and Charoen Pokphand
Assuming the 90 days trading horizon B GRIMM POWER is expected to under-perform the Charoen Pokphand. In addition to that, B GRIMM is 10.33 times more volatile than Charoen Pokphand Foods. It trades about -0.19 of its total potential returns per unit of risk. Charoen Pokphand Foods is currently generating about -0.08 per unit of volatility. If you would invest 2,430 in Charoen Pokphand Foods on September 13, 2024 and sell it today you would lose (40.00) from holding Charoen Pokphand Foods or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
B GRIMM POWER vs. Charoen Pokphand Foods
Performance |
| Timeline |
| B GRIMM POWER |
| Charoen Pokphand Foods |
B GRIMM and Charoen Pokphand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B GRIMM and Charoen Pokphand
The main advantage of trading using opposite B GRIMM and Charoen Pokphand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B GRIMM position performs unexpectedly, Charoen Pokphand 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 Charoen Pokphand will offset losses from the drop in Charoen Pokphand's long position.| B GRIMM vs. Super Energy | B GRIMM vs. The Erawan Group | B GRIMM vs. XSpring Capital Public | B GRIMM vs. Ditto Public |
| Charoen Pokphand vs. CP ALL Public | Charoen Pokphand vs. The Siam Cement | Charoen Pokphand vs. OSOTSPA PCL NVDR | Charoen Pokphand vs. The Siam Commercial |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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