Correlation Between CP ALL and Intouch Holdings
Can any of the company-specific risk be diversified away by investing in both CP ALL and Intouch Holdings 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 Intouch Holdings 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 Intouch Holdings Public, you can compare the effects of market volatilities on CP ALL and Intouch Holdings 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 Intouch Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Intouch Holdings.
Diversification Opportunities for CP ALL and Intouch Holdings
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CPALL and Intouch is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Intouch Holdings Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Holdings 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 Intouch Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Holdings Public has no effect on the direction of CP ALL i.e., CP ALL and Intouch Holdings go up and down completely randomly.
Pair Corralation between CP ALL and Intouch Holdings
Assuming the 90 days trading horizon CP ALL Public is expected to under-perform the Intouch Holdings. In addition to that, CP ALL is 1.69 times more volatile than Intouch Holdings Public. It trades about -0.15 of its total potential returns per unit of risk. Intouch Holdings Public is currently generating about 0.13 per unit of volatility. If you would invest 9,425 in Intouch Holdings Public on November 5, 2024 and sell it today you would earn a total of 300.00 from holding Intouch Holdings Public or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. Intouch Holdings Public
Performance |
| Timeline |
| CP ALL Public |
| Intouch Holdings Public |
CP ALL and Intouch Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Intouch Holdings
The main advantage of trading using opposite CP ALL and Intouch Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Intouch Holdings 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 Intouch Holdings will offset losses from the drop in Intouch Holdings' long position.| CP ALL vs. Airports of Thailand | CP ALL vs. PTT Public | CP ALL vs. Bangkok Dusit Medical | CP ALL vs. Kasikornbank Public |
| Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. PTT Global Chemical | Intouch Holdings vs. PTT Public | Intouch Holdings vs. CP ALL 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |