Correlation Between CP ALL and Electricity Generating
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By analyzing existing cross correlation between CP ALL Public and Electricity Generating Public, you can compare the effects of market volatilities on CP ALL and Electricity Generating 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 Electricity Generating. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Electricity Generating.
Diversification Opportunities for CP ALL and Electricity Generating
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CPALL-R and Electricity is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Electricity Generating Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electricity Generating 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 Electricity Generating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electricity Generating has no effect on the direction of CP ALL i.e., CP ALL and Electricity Generating go up and down completely randomly.
Pair Corralation between CP ALL and Electricity Generating
Assuming the 90 days trading horizon CP ALL Public is expected to under-perform the Electricity Generating. But the stock apears to be less risky and, when comparing its historical volatility, CP ALL Public is 1.36 times less risky than Electricity Generating. The stock trades about -0.07 of its potential returns per unit of risk. The Electricity Generating Public is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 12,000 in Electricity Generating Public on August 28, 2024 and sell it today you would lose (50.00) from holding Electricity Generating Public or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. Electricity Generating Public
Performance |
| Timeline |
| CP ALL Public |
| Electricity Generating |
CP ALL and Electricity Generating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Electricity Generating
The main advantage of trading using opposite CP ALL and Electricity Generating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Electricity Generating 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 Electricity Generating will offset losses from the drop in Electricity Generating'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 |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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