Correlation Between CP ALL and BANPU POWER
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By analyzing existing cross correlation between CP ALL Public and BANPU POWER, you can compare the effects of market volatilities on CP ALL and BANPU POWER 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 CP ALL with a short position of BANPU POWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and BANPU POWER.
Diversification Opportunities for CP ALL and BANPU POWER
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CPALL-R and BANPU is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and BANPU POWER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANPU POWER and CP ALL 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 CP ALL Public are associated (or correlated) with BANPU POWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANPU POWER has no effect on the direction of CP ALL i.e., CP ALL and BANPU POWER go up and down completely randomly.
Pair Corralation between CP ALL and BANPU POWER
Assuming the 90 days trading horizon CP ALL Public is expected to generate 0.23 times more return on investment than BANPU POWER. However, CP ALL Public is 4.28 times less risky than BANPU POWER. It trades about 0.07 of its potential returns per unit of risk. BANPU POWER is currently generating about -0.22 per unit of risk. If you would invest 5,450 in CP ALL Public on October 20, 2024 and sell it today you would earn a total of 100.00 from holding CP ALL Public or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. BANPU POWER
Performance |
| Timeline |
| CP ALL Public |
| BANPU POWER |
CP ALL and BANPU POWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and BANPU POWER
The main advantage of trading using opposite CP ALL and BANPU POWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, BANPU POWER 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 BANPU POWER will offset losses from the drop in BANPU POWER's long position.| CP ALL vs. Airports of Thailand | CP ALL vs. CP ALL Public | CP ALL vs. Charoen Pokphand Foods | CP ALL vs. Bangkok Dusit Medical |
| BANPU POWER vs. Charoen Pokphand Foods | BANPU POWER vs. The Siam Cement | BANPU POWER vs. Ratch Group Public | BANPU POWER vs. Amata 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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