Correlation Between CP ALL and Vibhavadi Medical
Can any of the company-specific risk be diversified away by investing in both CP ALL and Vibhavadi Medical 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 Vibhavadi Medical 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 Vibhavadi Medical Center, you can compare the effects of market volatilities on CP ALL and Vibhavadi Medical 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 Vibhavadi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Vibhavadi Medical.
Diversification Opportunities for CP ALL and Vibhavadi Medical
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between CPALL and Vibhavadi is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Vibhavadi Medical Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vibhavadi Medical Center 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 Vibhavadi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vibhavadi Medical Center has no effect on the direction of CP ALL i.e., CP ALL and Vibhavadi Medical go up and down completely randomly.
Pair Corralation between CP ALL and Vibhavadi Medical
Assuming the 90 days trading horizon CP ALL Public is expected to under-perform the Vibhavadi Medical. But the stock apears to be less risky and, when comparing its historical volatility, CP ALL Public is 1.39 times less risky than Vibhavadi Medical. The stock trades about -0.03 of its potential returns per unit of risk. The Vibhavadi Medical Center is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Vibhavadi Medical Center on September 12, 2024 and sell it today you would earn a total of 28.00 from holding Vibhavadi Medical Center or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CP ALL Public vs. Vibhavadi Medical Center
Performance |
| Timeline |
| CP ALL Public |
| Vibhavadi Medical Center |
CP ALL and Vibhavadi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CP ALL and Vibhavadi Medical
The main advantage of trading using opposite CP ALL and Vibhavadi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Vibhavadi Medical 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 Vibhavadi Medical will offset losses from the drop in Vibhavadi Medical'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 |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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