Correlation Between Charoen Pokphand and Ratch Group
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By analyzing existing cross correlation between Charoen Pokphand Foods and Ratch Group Public, you can compare the effects of market volatilities on Charoen Pokphand and Ratch Group 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 Charoen Pokphand with a short position of Ratch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charoen Pokphand and Ratch Group.
Diversification Opportunities for Charoen Pokphand and Ratch Group
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Charoen and Ratch is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Charoen Pokphand Foods and Ratch Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratch Group Public and Charoen Pokphand 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 Charoen Pokphand Foods are associated (or correlated) with Ratch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratch Group Public has no effect on the direction of Charoen Pokphand i.e., Charoen Pokphand and Ratch Group go up and down completely randomly.
Pair Corralation between Charoen Pokphand and Ratch Group
Assuming the 90 days trading horizon Charoen Pokphand Foods is expected to generate 0.25 times more return on investment than Ratch Group. However, Charoen Pokphand Foods is 4.04 times less risky than Ratch Group. It trades about -0.08 of its potential returns per unit of risk. Ratch Group Public is currently generating about -0.14 per unit of risk. If you would invest 2,430 in Charoen Pokphand Foods on September 13, 2024 and sell it today you would lose (40.00) from holding Charoen Pokphand Foods or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charoen Pokphand Foods vs. Ratch Group Public
Performance |
| Timeline |
| Charoen Pokphand Foods |
| Ratch Group Public |
Charoen Pokphand and Ratch Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charoen Pokphand and Ratch Group
The main advantage of trading using opposite Charoen Pokphand and Ratch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charoen Pokphand position performs unexpectedly, Ratch Group 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 Ratch Group will offset losses from the drop in Ratch Group's long position.| Charoen Pokphand vs. CP ALL Public | Charoen Pokphand vs. The Siam Cement | Charoen Pokphand vs. OSOTSPA PCL NVDR | Charoen Pokphand vs. The Siam Commercial |
| Ratch Group vs. Electricity Generating Public | Ratch Group vs. The Siam Cement | Ratch Group vs. PTT Exploration and | Ratch Group vs. PTT 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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