Correlation Between Com7 PCL and CP ALL
Can any of the company-specific risk be diversified away by investing in both Com7 PCL and CP ALL 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 CP ALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com7 PCL and CP ALL Public, you can compare the effects of market volatilities on Com7 PCL and CP ALL 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 CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and CP ALL.
Diversification Opportunities for Com7 PCL and CP ALL
Average diversification
The 3 months correlation between Com7 and CPALL is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL 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 CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Com7 PCL i.e., Com7 PCL and CP ALL go up and down completely randomly.
Pair Corralation between Com7 PCL and CP ALL
Assuming the 90 days trading horizon Com7 PCL is expected to generate 1.81 times more return on investment than CP ALL. However, Com7 PCL is 1.81 times more volatile than CP ALL Public. It trades about 0.02 of its potential returns per unit of risk. CP ALL Public is currently generating about 0.01 per unit of risk. If you would invest 2,652 in Com7 PCL on August 28, 2024 and sell it today you would earn a total of 98.00 from holding Com7 PCL or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Com7 PCL vs. CP ALL Public
Performance |
| Timeline |
| Com7 PCL |
| CP ALL Public |
Com7 PCL and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com7 PCL and CP ALL
The main advantage of trading using opposite Com7 PCL and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, CP ALL 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 ALL will offset losses from the drop in CP ALL'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 |
| CP ALL vs. Airports of Thailand | CP ALL vs. PTT Public | CP ALL vs. Bangkok Dusit Medical | CP ALL vs. Kasikornbank 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |