Correlation Between Central Pattana and Chiangmai Frozen
Can any of the company-specific risk be diversified away by investing in both Central Pattana and Chiangmai Frozen 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 Chiangmai Frozen 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 Chiangmai Frozen Foods, you can compare the effects of market volatilities on Central Pattana and Chiangmai Frozen 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 Chiangmai Frozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and Chiangmai Frozen.
Diversification Opportunities for Central Pattana and Chiangmai Frozen
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Central and Chiangmai is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and Chiangmai Frozen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiangmai Frozen Foods 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 Chiangmai Frozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiangmai Frozen Foods has no effect on the direction of Central Pattana i.e., Central Pattana and Chiangmai Frozen go up and down completely randomly.
Pair Corralation between Central Pattana and Chiangmai Frozen
Assuming the 90 days trading horizon Central Pattana Public is expected to generate 1.4 times more return on investment than Chiangmai Frozen. However, Central Pattana is 1.4 times more volatile than Chiangmai Frozen Foods. It trades about -0.13 of its potential returns per unit of risk. Chiangmai Frozen Foods is currently generating about -0.24 per unit of risk. If you would invest 6,500 in Central Pattana Public on August 26, 2024 and sell it today you would lose (275.00) from holding Central Pattana Public or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Pattana Public vs. Chiangmai Frozen Foods
Performance |
| Timeline |
| Central Pattana Public |
| Chiangmai Frozen Foods |
Central Pattana and Chiangmai Frozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pattana and Chiangmai Frozen
The main advantage of trading using opposite Central Pattana and Chiangmai Frozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pattana position performs unexpectedly, Chiangmai Frozen 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 Chiangmai Frozen will offset losses from the drop in Chiangmai Frozen'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 |
| Chiangmai Frozen vs. CP ALL Public | Chiangmai Frozen vs. Thai Union Group | Chiangmai Frozen vs. Minor International Public | Chiangmai Frozen 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| 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 | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |