Correlation Between CP ALL and SRI TRANG
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By analyzing existing cross correlation between CP ALL Public and SRI TRANG GLOVES, you can compare the effects of market volatilities on CP ALL and SRI TRANG 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 SRI TRANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and SRI TRANG.
Diversification Opportunities for CP ALL and SRI TRANG
Poor diversification
The 3 months correlation between CPALL-R and SRI is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and SRI TRANG GLOVES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRI TRANG GLOVES 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 SRI TRANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRI TRANG GLOVES has no effect on the direction of CP ALL i.e., CP ALL and SRI TRANG go up and down completely randomly.
Pair Corralation between CP ALL and SRI TRANG
Assuming the 90 days trading horizon CP ALL Public is expected to generate 1.14 times more return on investment than SRI TRANG. However, CP ALL is 1.14 times more volatile than SRI TRANG GLOVES. It trades about -0.04 of its potential returns per unit of risk. SRI TRANG GLOVES is currently generating about -0.27 per unit of risk. If you would invest 5,575 in CP ALL Public on November 30, 2024 and sell it today you would lose (350.00) from holding CP ALL Public or give up 6.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. SRI TRANG GLOVES
Performance |
| Timeline |
| CP ALL Public |
| SRI TRANG GLOVES |
CP ALL and SRI TRANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and SRI TRANG
The main advantage of trading using opposite CP ALL and SRI TRANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, SRI TRANG 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 SRI TRANG will offset losses from the drop in SRI TRANG's long position.| CP ALL vs. CP ALL Public | CP ALL vs. Charoen Pokphand Foods | CP ALL vs. Bangkok Dusit Medical | CP ALL vs. PTT Public |
| SRI TRANG vs. Chiangmai Frozen Foods | SRI TRANG vs. The Navakij Insurance | SRI TRANG vs. Porn Prom Metal | SRI TRANG vs. Charoen Pokphand Foods |
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 CEOs Directory module to screen CEOs from public companies around the world.
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