Correlation Between Com7 PCL and Cal Comp
Can any of the company-specific risk be diversified away by investing in both Com7 PCL and Cal Comp 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 Cal Comp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com7 PCL and Cal Comp Electronics Public, you can compare the effects of market volatilities on Com7 PCL and Cal Comp 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 Cal Comp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and Cal Comp.
Diversification Opportunities for Com7 PCL and Cal Comp
Very weak diversification
The 3 months correlation between Com7 and Cal is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and Cal Comp Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Comp Electronics 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 Cal Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Comp Electronics has no effect on the direction of Com7 PCL i.e., Com7 PCL and Cal Comp go up and down completely randomly.
Pair Corralation between Com7 PCL and Cal Comp
Assuming the 90 days trading horizon Com7 PCL is expected to under-perform the Cal Comp. But the stock apears to be less risky and, when comparing its historical volatility, Com7 PCL is 2.35 times less risky than Cal Comp. The stock trades about -0.22 of its potential returns per unit of risk. The Cal Comp Electronics Public is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 830.00 in Cal Comp Electronics Public on October 9, 2024 and sell it today you would earn a total of 180.00 from holding Cal Comp Electronics Public or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com7 PCL vs. Cal Comp Electronics Public
Performance |
| Timeline |
| Com7 PCL |
| Cal Comp Electronics |
Com7 PCL and Cal Comp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com7 PCL and Cal Comp
The main advantage of trading using opposite Com7 PCL and Cal Comp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, Cal Comp 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 Cal Comp will offset losses from the drop in Cal Comp'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 |
| Cal Comp vs. Hana Microelectronics Public | Cal Comp vs. KCE Electronics Public | Cal Comp vs. Dynasty Ceramic Public | Cal Comp vs. Delta Electronics 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |