Correlation Between CP ALL and GFPT Public
Can any of the company-specific risk be diversified away by investing in both CP ALL and GFPT Public 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 GFPT Public 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 GFPT Public, you can compare the effects of market volatilities on CP ALL and GFPT 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 GFPT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and GFPT Public.
Diversification Opportunities for CP ALL and GFPT Public
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CPALL and GFPT is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and GFPT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFPT 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 GFPT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFPT Public has no effect on the direction of CP ALL i.e., CP ALL and GFPT Public go up and down completely randomly.
Pair Corralation between CP ALL and GFPT Public
Assuming the 90 days trading horizon CP ALL Public is expected to generate 0.79 times more return on investment than GFPT Public. However, CP ALL Public is 1.27 times less risky than GFPT Public. It trades about 0.07 of its potential returns per unit of risk. GFPT Public is currently generating about -0.09 per unit of risk. If you would invest 5,750 in CP ALL Public on August 28, 2024 and sell it today you would earn a total of 575.00 from holding CP ALL Public or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
CP ALL Public vs. GFPT Public
Performance |
| Timeline |
| CP ALL Public |
| GFPT Public |
CP ALL and GFPT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and GFPT Public
The main advantage of trading using opposite CP ALL and GFPT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, GFPT 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 GFPT Public will offset losses from the drop in GFPT Public'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 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |