Correlation Between CK Power and TPI Polene
Can any of the company-specific risk be diversified away by investing in both CK Power and TPI Polene 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 CK Power and TPI Polene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK Power Public and TPI Polene Power, you can compare the effects of market volatilities on CK Power and TPI Polene 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 CK Power with a short position of TPI Polene. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Power and TPI Polene.
Diversification Opportunities for CK Power and TPI Polene
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CKP-R and TPI is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CK Power Public and TPI Polene Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPI Polene Power and CK Power 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 CK Power Public are associated (or correlated) with TPI Polene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPI Polene Power has no effect on the direction of CK Power i.e., CK Power and TPI Polene go up and down completely randomly.
Pair Corralation between CK Power and TPI Polene
Assuming the 90 days trading horizon CK Power Public is expected to generate 2.35 times more return on investment than TPI Polene. However, CK Power is 2.35 times more volatile than TPI Polene Power. It trades about 0.0 of its potential returns per unit of risk. TPI Polene Power is currently generating about 0.0 per unit of risk. If you would invest 334.00 in CK Power Public on September 12, 2024 and sell it today you would lose (12.00) from holding CK Power Public or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK Power Public vs. TPI Polene Power
Performance |
| Timeline |
| CK Power Public |
| TPI Polene Power |
CK Power and TPI Polene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Power and TPI Polene
The main advantage of trading using opposite CK Power and TPI Polene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Power position performs unexpectedly, TPI Polene 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 TPI Polene will offset losses from the drop in TPI Polene's long position.| CK Power vs. Sri panwa Hospitality | CK Power vs. Bumrungrad Hospital Public | CK Power vs. Ramkhamhaeng Hospital Public | CK Power vs. Quality Hospitality Leasehold |
| TPI Polene vs. WHA Public | TPI Polene vs. Global Power Synergy | TPI Polene vs. Bangkok Expressway and | TPI Polene vs. BGrimm Power 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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