Correlation Between Central Pattana and Tropical Canning
Can any of the company-specific risk be diversified away by investing in both Central Pattana and Tropical Canning 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 Tropical Canning 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 Tropical Canning Public, you can compare the effects of market volatilities on Central Pattana and Tropical Canning 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 Tropical Canning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and Tropical Canning.
Diversification Opportunities for Central Pattana and Tropical Canning
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Central and Tropical is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and Tropical Canning Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tropical Canning 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 Tropical Canning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tropical Canning Public has no effect on the direction of Central Pattana i.e., Central Pattana and Tropical Canning go up and down completely randomly.
Pair Corralation between Central Pattana and Tropical Canning
Assuming the 90 days trading horizon Central Pattana Public is expected to under-perform the Tropical Canning. But the stock apears to be less risky and, when comparing its historical volatility, Central Pattana Public is 31.31 times less risky than Tropical Canning. The stock trades about -0.01 of its potential returns per unit of risk. The Tropical Canning Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,167 in Tropical Canning Public on August 30, 2024 and sell it today you would lose (482.00) from holding Tropical Canning Public or give up 41.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Pattana Public vs. Tropical Canning Public
Performance |
| Timeline |
| Central Pattana Public |
| Tropical Canning Public |
Central Pattana and Tropical Canning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pattana and Tropical Canning
The main advantage of trading using opposite Central Pattana and Tropical Canning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pattana position performs unexpectedly, Tropical Canning 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 Tropical Canning will offset losses from the drop in Tropical Canning's long position.| Central Pattana vs. Eastern Star Real | Central Pattana vs. Ananda Development Public | Central Pattana vs. Better World Green | Central Pattana vs. Dcon Products Public |
| Tropical Canning vs. Thai Vegetable Oil | Tropical Canning vs. Tipco Foods Public | Tropical Canning vs. Haad Thip Public | Tropical Canning vs. SP Syndicate 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |