Correlation Between CP ALL and Selic Corp
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By analyzing existing cross correlation between CP ALL Public and Selic Corp Public, you can compare the effects of market volatilities on CP ALL and Selic Corp 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 Selic Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Selic Corp.
Diversification Opportunities for CP ALL and Selic Corp
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CPALL-R and Selic is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Selic Corp Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selic Corp 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 Selic Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selic Corp Public has no effect on the direction of CP ALL i.e., CP ALL and Selic Corp go up and down completely randomly.
Pair Corralation between CP ALL and Selic Corp
Assuming the 90 days trading horizon CP ALL is expected to generate 569.18 times less return on investment than Selic Corp. But when comparing it to its historical volatility, CP ALL Public is 34.78 times less risky than Selic Corp. It trades about 0.0 of its potential returns per unit of risk. Selic Corp Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 259.00 in Selic Corp Public on September 12, 2024 and sell it today you would earn a total of 63.00 from holding Selic Corp Public or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. Selic Corp Public
Performance |
| Timeline |
| CP ALL Public |
| Selic Corp Public |
CP ALL and Selic Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Selic Corp
The main advantage of trading using opposite CP ALL and Selic Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Selic Corp 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 Selic Corp will offset losses from the drop in Selic Corp'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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