Correlation Between CP ALL and Sabina Public
Can any of the company-specific risk be diversified away by investing in both CP ALL and Sabina 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 Sabina 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 Sabina Public, you can compare the effects of market volatilities on CP ALL and Sabina 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 Sabina Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Sabina Public.
Diversification Opportunities for CP ALL and Sabina Public
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CPALL and Sabina is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Sabina Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabina 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 Sabina Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabina Public has no effect on the direction of CP ALL i.e., CP ALL and Sabina Public go up and down completely randomly.
Pair Corralation between CP ALL and Sabina Public
Assuming the 90 days trading horizon CP ALL Public is expected to under-perform the Sabina Public. In addition to that, CP ALL is 1.21 times more volatile than Sabina Public. It trades about -0.15 of its total potential returns per unit of risk. Sabina Public is currently generating about -0.16 per unit of volatility. If you would invest 2,190 in Sabina Public on September 4, 2024 and sell it today you would lose (70.00) from holding Sabina Public or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. Sabina Public
Performance |
| Timeline |
| CP ALL Public |
| Sabina Public |
CP ALL and Sabina Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Sabina Public
The main advantage of trading using opposite CP ALL and Sabina Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Sabina 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 Sabina Public will offset losses from the drop in Sabina 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 |
| Sabina Public vs. MK Restaurant Group | Sabina Public vs. Quality Houses Public | Sabina Public vs. SiS Distribution Public | Sabina Public vs. Ratchthani Leasing 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
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |