Correlation Between CK Power and Country Group
Can any of the company-specific risk be diversified away by investing in both CK Power and Country Group 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 Country Group 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 Country Group Holdings, you can compare the effects of market volatilities on CK Power and Country Group 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 Country Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Power and Country Group.
Diversification Opportunities for CK Power and Country Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CKP and Country is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CK Power Public and Country Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Group Holdings 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 Country Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Group Holdings has no effect on the direction of CK Power i.e., CK Power and Country Group go up and down completely randomly.
Pair Corralation between CK Power and Country Group
Assuming the 90 days trading horizon CK Power Public is expected to under-perform the Country Group. In addition to that, CK Power is 1.41 times more volatile than Country Group Holdings. It trades about -0.28 of its total potential returns per unit of risk. Country Group Holdings is currently generating about 0.01 per unit of volatility. If you would invest 68.00 in Country Group Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Country Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK Power Public vs. Country Group Holdings
Performance |
| Timeline |
| CK Power Public |
| Country Group Holdings |
CK Power and Country Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Power and Country Group
The main advantage of trading using opposite CK Power and Country Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Power position performs unexpectedly, Country Group 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 Country Group will offset losses from the drop in Country Group's long position.| CK Power vs. Energy Absolute Public | CK Power vs. BCPG Public | CK Power vs. Bangkok Expressway and | CK Power vs. Gulf Energy Development |
| Country Group vs. Asia Plus Group | Country Group vs. Globlex Holding Management | Country Group vs. Asia Green Energy | Country Group vs. Amanah Leasing 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
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |