Correlation Between CP ALL and Siam Global
Can any of the company-specific risk be diversified away by investing in both CP ALL and Siam Global 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 Siam Global 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 Siam Global House, you can compare the effects of market volatilities on CP ALL and Siam Global 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 Siam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Siam Global.
Diversification Opportunities for CP ALL and Siam Global
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CPALL and Siam is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Siam Global House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Global House 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 Siam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Global House has no effect on the direction of CP ALL i.e., CP ALL and Siam Global go up and down completely randomly.
Pair Corralation between CP ALL and Siam Global
Assuming the 90 days trading horizon CP ALL Public is expected to under-perform the Siam Global. But the stock apears to be less risky and, when comparing its historical volatility, CP ALL Public is 1.43 times less risky than Siam Global. The stock trades about -0.03 of its potential returns per unit of risk. The Siam Global House is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,550 in Siam Global House on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Siam Global House or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
CP ALL Public vs. Siam Global House
Performance |
| Timeline |
| CP ALL Public |
| Siam Global House |
CP ALL and Siam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Siam Global
The main advantage of trading using opposite CP ALL and Siam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Siam Global 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 Siam Global will offset losses from the drop in Siam Global'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 |
| Siam Global vs. Home Product Center | Siam Global vs. Bangkok Dusit Medical | Siam Global vs. Carabao Group Public | Siam Global vs. Global Power Synergy |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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