Correlation Between CPN Commercial and Amata Summit
Can any of the company-specific risk be diversified away by investing in both CPN Commercial and Amata Summit 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 CPN Commercial and Amata Summit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPN Commercial Growth and Amata Summit Growth, you can compare the effects of market volatilities on CPN Commercial and Amata Summit 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 CPN Commercial with a short position of Amata Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPN Commercial and Amata Summit.
Diversification Opportunities for CPN Commercial and Amata Summit
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CPN and Amata is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CPN Commercial Growth and Amata Summit Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata Summit Growth and CPN Commercial 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 CPN Commercial Growth are associated (or correlated) with Amata Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Summit Growth has no effect on the direction of CPN Commercial i.e., CPN Commercial and Amata Summit go up and down completely randomly.
Pair Corralation between CPN Commercial and Amata Summit
Assuming the 90 days trading horizon CPN Commercial Growth is expected to under-perform the Amata Summit. In addition to that, CPN Commercial is 2.33 times more volatile than Amata Summit Growth. It trades about -0.02 of its total potential returns per unit of risk. Amata Summit Growth is currently generating about 0.23 per unit of volatility. If you would invest 644.00 in Amata Summit Growth on September 3, 2024 and sell it today you would earn a total of 21.00 from holding Amata Summit Growth or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPN Commercial Growth vs. Amata Summit Growth
Performance |
| Timeline |
| CPN Commercial Growth |
| Amata Summit Growth |
CPN Commercial and Amata Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPN Commercial and Amata Summit
The main advantage of trading using opposite CPN Commercial and Amata Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPN Commercial position performs unexpectedly, Amata Summit 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 Amata Summit will offset losses from the drop in Amata Summit's long position.| CPN Commercial vs. Digital Telecommunications Infrastructure | CPN Commercial vs. Prime Office Leasehold | CPN Commercial vs. CPN Retail Growth | CPN Commercial vs. Dynasty Ceramic Public |
| Amata Summit vs. WHA Premium Growth | Amata Summit vs. AIM Industrial Growth | Amata Summit vs. Bangkok Commercial Property | Amata Summit vs. Quality Houses Property |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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