Correlation Between CP ALL and Bangsaphan Barmill
Can any of the company-specific risk be diversified away by investing in both CP ALL and Bangsaphan Barmill 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 Bangsaphan Barmill 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 Bangsaphan Barmill Public, you can compare the effects of market volatilities on CP ALL and Bangsaphan Barmill 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 Bangsaphan Barmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Bangsaphan Barmill.
Diversification Opportunities for CP ALL and Bangsaphan Barmill
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CPALL and Bangsaphan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Bangsaphan Barmill Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangsaphan Barmill 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 Bangsaphan Barmill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangsaphan Barmill Public has no effect on the direction of CP ALL i.e., CP ALL and Bangsaphan Barmill go up and down completely randomly.
Pair Corralation between CP ALL and Bangsaphan Barmill
Assuming the 90 days trading horizon CP ALL is expected to generate 182.51 times less return on investment than Bangsaphan Barmill. But when comparing it to its historical volatility, CP ALL Public is 42.01 times less risky than Bangsaphan Barmill. It trades about 0.01 of its potential returns per unit of risk. Bangsaphan Barmill Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 68.00 in Bangsaphan Barmill Public on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Bangsaphan Barmill Public or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. Bangsaphan Barmill Public
Performance |
| Timeline |
| CP ALL Public |
| Bangsaphan Barmill Public |
CP ALL and Bangsaphan Barmill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Bangsaphan Barmill
The main advantage of trading using opposite CP ALL and Bangsaphan Barmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Bangsaphan Barmill 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 Bangsaphan Barmill will offset losses from the drop in Bangsaphan Barmill's long position.| CP ALL vs. Airports of Thailand | CP ALL vs. PTT Public | CP ALL vs. Bangkok Dusit Medical | CP ALL vs. Kasikornbank Public |
| Bangsaphan Barmill vs. Asia Metal Public | Bangsaphan Barmill vs. Chonburi Concrete Product | Bangsaphan Barmill vs. Asia Plus Group | Bangsaphan Barmill vs. CSP Steel Center |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |