Correlation Between Central Pattana and Berli Jucker
Can any of the company-specific risk be diversified away by investing in both Central Pattana and Berli Jucker 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 Berli Jucker 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 Berli Jucker Public, you can compare the effects of market volatilities on Central Pattana and Berli Jucker 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 Berli Jucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and Berli Jucker.
Diversification Opportunities for Central Pattana and Berli Jucker
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Central and Berli is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and Berli Jucker Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker 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 Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker Public has no effect on the direction of Central Pattana i.e., Central Pattana and Berli Jucker go up and down completely randomly.
Pair Corralation between Central Pattana and Berli Jucker
Assuming the 90 days trading horizon Central Pattana Public is expected to under-perform the Berli Jucker. In addition to that, Central Pattana is 1.07 times more volatile than Berli Jucker Public. It trades about -0.15 of its total potential returns per unit of risk. Berli Jucker Public is currently generating about -0.12 per unit of volatility. If you would invest 2,400 in Berli Jucker Public on August 29, 2024 and sell it today you would lose (90.00) from holding Berli Jucker Public or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Pattana Public vs. Berli Jucker Public
Performance |
| Timeline |
| Central Pattana Public |
| Berli Jucker Public |
Central Pattana and Berli Jucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pattana and Berli Jucker
The main advantage of trading using opposite Central Pattana and Berli Jucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pattana position performs unexpectedly, Berli Jucker 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 Berli Jucker will offset losses from the drop in Berli Jucker's long position.| Central Pattana vs. Eastern Star Real | Central Pattana vs. Bangkok Land Public | Central Pattana vs. Ananda Development Public | Central Pattana vs. Better World Green |
| Berli Jucker vs. CP ALL Public | Berli Jucker vs. Bangkok Dusit Medical | Berli Jucker vs. BTS Group Holdings | Berli Jucker vs. Central Pattana 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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