Correlation Between Central Pattana and OHTL Public
Can any of the company-specific risk be diversified away by investing in both Central Pattana and OHTL Public 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 OHTL Public 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 OHTL Public, you can compare the effects of market volatilities on Central Pattana and OHTL Public 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 OHTL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and OHTL Public.
Diversification Opportunities for Central Pattana and OHTL Public
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Central and OHTL is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and OHTL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OHTL 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 OHTL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OHTL Public has no effect on the direction of Central Pattana i.e., Central Pattana and OHTL Public go up and down completely randomly.
Pair Corralation between Central Pattana and OHTL Public
Assuming the 90 days trading horizon Central Pattana is expected to generate 320.89 times less return on investment than OHTL Public. But when comparing it to its historical volatility, Central Pattana Public is 69.49 times less risky than OHTL Public. It trades about 0.03 of its potential returns per unit of risk. OHTL Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.00 in OHTL Public on September 4, 2024 and sell it today you would earn a total of 34,600 from holding OHTL Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Pattana Public vs. OHTL Public
Performance |
| Timeline |
| Central Pattana Public |
| OHTL Public |
Central Pattana and OHTL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pattana and OHTL Public
The main advantage of trading using opposite Central Pattana and OHTL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pattana position performs unexpectedly, OHTL Public 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 OHTL Public will offset losses from the drop in OHTL Public'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 |
| OHTL Public vs. Central Pattana Public | OHTL Public vs. CP ALL Public | OHTL Public vs. Bangkok Dusit Medical | OHTL Public 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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