Correlation Between Central Pattana and CP ALL
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By analyzing existing cross correlation between Central Pattana Public and CP ALL Public, you can compare the effects of market volatilities on Central Pattana and CP ALL 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 Central Pattana with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and CP ALL.
Diversification Opportunities for Central Pattana and CP ALL
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Central and CPALL-R is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and Central Pattana 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 Central Pattana Public are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Central Pattana i.e., Central Pattana and CP ALL go up and down completely randomly.
Pair Corralation between Central Pattana and CP ALL
Assuming the 90 days trading horizon Central Pattana Public is expected to under-perform the CP ALL. In addition to that, Central Pattana is 1.42 times more volatile than CP ALL Public. It trades about -0.26 of its total potential returns per unit of risk. CP ALL Public is currently generating about -0.13 per unit of volatility. If you would invest 6,325 in CP ALL Public on September 1, 2024 and sell it today you would lose (200.00) from holding CP ALL Public or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Central Pattana Public vs. CP ALL Public
Performance |
| Timeline |
| Central Pattana Public |
| CP ALL Public |
Central Pattana and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pattana and CP ALL
The main advantage of trading using opposite Central Pattana and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pattana position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| Central Pattana vs. PTG Energy Public | Central Pattana vs. WHA Public | Central Pattana vs. Thai Union Group | Central Pattana vs. Ratch Group Public |
| CP ALL vs. Airports of Thailand | CP ALL vs. CP ALL Public | CP ALL vs. Charoen Pokphand Foods | CP ALL 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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