Correlation Between CP ALL and Berli Jucker
Can any of the company-specific risk be diversified away by investing in both CP ALL and Berli Jucker at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CP ALL and Berli Jucker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CP ALL Public and Berli Jucker Public, you can compare the effects of market volatilities on CP ALL and Berli Jucker 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 Berli Jucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Berli Jucker.
Diversification Opportunities for CP ALL and Berli Jucker
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CPALL and Berli is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Berli Jucker Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker 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 Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker Public has no effect on the direction of CP ALL i.e., CP ALL and Berli Jucker go up and down completely randomly.
Pair Corralation between CP ALL and Berli Jucker
Assuming the 90 days trading horizon CP ALL Public is expected to under-perform the Berli Jucker. But the stock apears to be less risky and, when comparing its historical volatility, CP ALL Public is 1.35 times less risky than Berli Jucker. The stock trades about -0.13 of its potential returns per unit of risk. The Berli Jucker Public is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 2,410 in Berli Jucker Public on September 1, 2024 and sell it today you would lose (50.00) from holding Berli Jucker Public or give up 2.07% 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. Berli Jucker Public
Performance |
| Timeline |
| CP ALL Public |
| Berli Jucker Public |
CP ALL and Berli Jucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Berli Jucker
The main advantage of trading using opposite CP ALL and Berli Jucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Berli Jucker 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 Berli Jucker will offset losses from the drop in Berli Jucker's long position.| CP ALL vs. MK Restaurant Group | CP ALL vs. TRC Construction Public | CP ALL vs. Bangkok Expressway and | CP ALL vs. Lohakit Metal Public |
| Berli Jucker vs. CP ALL Public | Berli Jucker vs. Bangkok Dusit Medical | Berli Jucker vs. BTS Group Holdings | Berli Jucker vs. Central Pattana 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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