Correlation Between CP ALL and Thanapiriya Public
Can any of the company-specific risk be diversified away by investing in both CP ALL and Thanapiriya 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 Thanapiriya 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 Thanapiriya Public, you can compare the effects of market volatilities on CP ALL and Thanapiriya 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 Thanapiriya Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Thanapiriya Public.
Diversification Opportunities for CP ALL and Thanapiriya Public
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CPALL and Thanapiriya is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya 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 Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of CP ALL i.e., CP ALL and Thanapiriya Public go up and down completely randomly.
Pair Corralation between CP ALL and Thanapiriya Public
Assuming the 90 days trading horizon CP ALL Public is expected to under-perform the Thanapiriya Public. But the stock apears to be less risky and, when comparing its historical volatility, CP ALL Public is 1.87 times less risky than Thanapiriya Public. The stock trades about -0.13 of its potential returns per unit of risk. The Thanapiriya Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Thanapiriya Public on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Thanapiriya Public or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. Thanapiriya Public
Performance |
| Timeline |
| CP ALL Public |
| Thanapiriya Public |
CP ALL and Thanapiriya Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Thanapiriya Public
The main advantage of trading using opposite CP ALL and Thanapiriya Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Thanapiriya 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 Thanapiriya Public will offset losses from the drop in Thanapiriya Public's long position.| CP ALL vs. MK Restaurant Group | CP ALL vs. TRC Construction Public | CP ALL vs. Bangkok Expressway and | CP ALL vs. Lohakit Metal Public |
| Thanapiriya Public vs. Airports of Thailand | Thanapiriya Public vs. CP ALL Public | Thanapiriya Public vs. Charoen Pokphand Foods | Thanapiriya Public vs. Bangkok Dusit Medical |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |