Correlation Between Central Pattana and Big Camera
Can any of the company-specific risk be diversified away by investing in both Central Pattana and Big Camera 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 Central Pattana and Big Camera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Pattana Public and Big Camera, you can compare the effects of market volatilities on Central Pattana and Big Camera 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 Big Camera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and Big Camera.
Diversification Opportunities for Central Pattana and Big Camera
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Central and Big is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and Big Camera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Camera 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 Big Camera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Camera has no effect on the direction of Central Pattana i.e., Central Pattana and Big Camera go up and down completely randomly.
Pair Corralation between Central Pattana and Big Camera
Assuming the 90 days trading horizon Central Pattana Public is expected to under-perform the Big Camera. But the stock apears to be less risky and, when comparing its historical volatility, Central Pattana Public is 31.27 times less risky than Big Camera. The stock trades about -0.01 of its potential returns per unit of risk. The Big Camera is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 68.00 in Big Camera on September 3, 2024 and sell it today you would lose (31.00) from holding Big Camera or give up 45.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Pattana Public vs. Big Camera
Performance |
| Timeline |
| Central Pattana Public |
| Big Camera |
Central Pattana and Big Camera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pattana and Big Camera
The main advantage of trading using opposite Central Pattana and Big Camera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pattana position performs unexpectedly, Big Camera 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 Big Camera will offset losses from the drop in Big Camera's long position.| Central Pattana vs. CP ALL Public | Central Pattana vs. Bangkok Dusit Medical | Central Pattana vs. Airports of Thailand | Central Pattana vs. Advanced Info Service |
| Big Camera vs. Central Pattana Public | Big Camera vs. CP ALL Public | Big Camera vs. Bangkok Dusit Medical | Big Camera vs. Airports of Thailand |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |