Correlation Between Central Pattana and PRG Public
Can any of the company-specific risk be diversified away by investing in both Central Pattana and PRG 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 PRG 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 PRG Public, you can compare the effects of market volatilities on Central Pattana and PRG 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 PRG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and PRG Public.
Diversification Opportunities for Central Pattana and PRG Public
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Central and PRG is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and PRG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRG 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 PRG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRG Public has no effect on the direction of Central Pattana i.e., Central Pattana and PRG Public go up and down completely randomly.
Pair Corralation between Central Pattana and PRG Public
Assuming the 90 days trading horizon Central Pattana Public is expected to under-perform the PRG Public. But the stock apears to be less risky and, when comparing its historical volatility, Central Pattana Public is 44.29 times less risky than PRG Public. The stock trades about -0.01 of its potential returns per unit of risk. The PRG Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,091 in PRG Public on August 26, 2024 and sell it today you would lose (196.00) from holding PRG Public or give up 17.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Central Pattana Public vs. PRG Public
Performance |
| Timeline |
| Central Pattana Public |
| PRG Public |
Central Pattana and PRG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pattana and PRG Public
The main advantage of trading using opposite Central Pattana and PRG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pattana position performs unexpectedly, PRG 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 PRG Public will offset losses from the drop in PRG 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 |
| PRG Public vs. CP ALL Public | PRG Public vs. Thai Union Group | PRG Public vs. Minor International Public | PRG Public 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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