Correlation Between CP ALL and Megachem Public
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By analyzing existing cross correlation between CP ALL Public and Megachem Public, you can compare the effects of market volatilities on CP ALL and Megachem Public 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 Megachem Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Megachem Public.
Diversification Opportunities for CP ALL and Megachem Public
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CPALL-R and Megachem is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Megachem Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megachem Public 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 Megachem Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megachem Public has no effect on the direction of CP ALL i.e., CP ALL and Megachem Public go up and down completely randomly.
Pair Corralation between CP ALL and Megachem Public
Assuming the 90 days trading horizon CP ALL is expected to generate 113.93 times less return on investment than Megachem Public. But when comparing it to its historical volatility, CP ALL Public is 68.96 times less risky than Megachem Public. It trades about 0.05 of its potential returns per unit of risk. Megachem Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 223.00 in Megachem Public on September 2, 2024 and sell it today you would lose (19.00) from holding Megachem Public or give up 8.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. Megachem Public
Performance |
| Timeline |
| CP ALL Public |
| Megachem Public |
CP ALL and Megachem Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Megachem Public
The main advantage of trading using opposite CP ALL and Megachem Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Megachem Public 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 Megachem Public will offset losses from the drop in Megachem Public'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 |
| Megachem Public vs. PTT Public | Megachem Public vs. The Siam Commercial | Megachem Public vs. Airports of Thailand | Megachem Public vs. CP ALL 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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