Correlation Between Com7 PCL and WICE Logistics
Can any of the company-specific risk be diversified away by investing in both Com7 PCL and WICE Logistics 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 WICE Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com7 PCL and WICE Logistics PCL, you can compare the effects of market volatilities on Com7 PCL and WICE Logistics 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 WICE Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and WICE Logistics.
Diversification Opportunities for Com7 PCL and WICE Logistics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Com7 and WICE is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and WICE Logistics PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WICE Logistics PCL 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 WICE Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WICE Logistics PCL has no effect on the direction of Com7 PCL i.e., Com7 PCL and WICE Logistics go up and down completely randomly.
Pair Corralation between Com7 PCL and WICE Logistics
Assuming the 90 days trading horizon Com7 PCL is expected to generate 0.9 times more return on investment than WICE Logistics. However, Com7 PCL is 1.11 times less risky than WICE Logistics. It trades about 0.0 of its potential returns per unit of risk. WICE Logistics PCL is currently generating about -0.05 per unit of risk. If you would invest 3,083 in Com7 PCL on August 29, 2024 and sell it today you would lose (383.00) from holding Com7 PCL or give up 12.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com7 PCL vs. WICE Logistics PCL
Performance |
| Timeline |
| Com7 PCL |
| WICE Logistics PCL |
Com7 PCL and WICE Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com7 PCL and WICE Logistics
The main advantage of trading using opposite Com7 PCL and WICE Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, WICE Logistics 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 WICE Logistics will offset losses from the drop in WICE Logistics' 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 |
| WICE Logistics vs. Tata Steel Public | WICE Logistics vs. Thaifoods Group Public | WICE Logistics vs. TMT Steel Public | WICE Logistics vs. The Erawan Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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