Correlation Between Bangkok Commercial and CP Tower
Can any of the company-specific risk be diversified away by investing in both Bangkok Commercial and CP Tower 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 Bangkok Commercial and CP Tower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Commercial Property and CP Tower Growth, you can compare the effects of market volatilities on Bangkok Commercial and CP Tower 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 Bangkok Commercial with a short position of CP Tower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Commercial and CP Tower.
Diversification Opportunities for Bangkok Commercial and CP Tower
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bangkok and CPTGF is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Commercial Property and CP Tower Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP Tower Growth and Bangkok Commercial 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 Bangkok Commercial Property are associated (or correlated) with CP Tower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP Tower Growth has no effect on the direction of Bangkok Commercial i.e., Bangkok Commercial and CP Tower go up and down completely randomly.
Pair Corralation between Bangkok Commercial and CP Tower
Assuming the 90 days trading horizon Bangkok Commercial Property is expected to generate 44.11 times more return on investment than CP Tower. However, Bangkok Commercial is 44.11 times more volatile than CP Tower Growth. It trades about 0.04 of its potential returns per unit of risk. CP Tower Growth is currently generating about -0.03 per unit of risk. If you would invest 1,030 in Bangkok Commercial Property on September 4, 2024 and sell it today you would lose (125.00) from holding Bangkok Commercial Property or give up 12.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.89% |
| Values | Daily Returns |
Bangkok Commercial Property vs. CP Tower Growth
Performance |
| Timeline |
| Bangkok Commercial |
| CP Tower Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Bangkok Commercial and CP Tower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Commercial and CP Tower
The main advantage of trading using opposite Bangkok Commercial and CP Tower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Commercial position performs unexpectedly, CP Tower 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 Tower will offset losses from the drop in CP Tower's long position.| Bangkok Commercial vs. WHA Premium Growth | Bangkok Commercial vs. Impact Growth REIT | Bangkok Commercial vs. LH Shopping Centers | Bangkok Commercial vs. Golden Ventures Leasehold |
| CP Tower vs. WHA Premium Growth | CP Tower vs. CPN Commercial Growth | CP Tower vs. Centara Hotels Resorts | CP Tower vs. Future Park Leasehold |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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