Correlation Between Com7 PCL and AP Public
Can any of the company-specific risk be diversified away by investing in both Com7 PCL and AP Public 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 Com7 PCL and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com7 PCL and AP Public, you can compare the effects of market volatilities on Com7 PCL and AP Public 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 Com7 PCL with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and AP Public.
Diversification Opportunities for Com7 PCL and AP Public
Good diversification
The 3 months correlation between Com7 and AP Public is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Com7 PCL 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 Com7 PCL are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Com7 PCL i.e., Com7 PCL and AP Public go up and down completely randomly.
Pair Corralation between Com7 PCL and AP Public
Assuming the 90 days trading horizon Com7 PCL is expected to under-perform the AP Public. In addition to that, Com7 PCL is 1.44 times more volatile than AP Public. It trades about 0.0 of its total potential returns per unit of risk. AP Public is currently generating about 0.0 per unit of volatility. If you would invest 940.00 in AP Public on August 25, 2024 and sell it today you would lose (55.00) from holding AP Public or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com7 PCL vs. AP Public
Performance |
| Timeline |
| Com7 PCL |
| AP Public |
Com7 PCL and AP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com7 PCL and AP Public
The main advantage of trading using opposite Com7 PCL and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, AP Public 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 AP Public will offset losses from the drop in AP Public's long position.| Com7 PCL vs. CP ALL Public | Com7 PCL vs. Home Product Center | Com7 PCL vs. Minor International Public | Com7 PCL vs. Bangkok Dusit Medical |
| AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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