Correlation Between CPR Gomu and Comanche International
Can any of the company-specific risk be diversified away by investing in both CPR Gomu and Comanche International 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 CPR Gomu and Comanche International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPR Gomu Industrial and Comanche International Public, you can compare the effects of market volatilities on CPR Gomu and Comanche International 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 CPR Gomu with a short position of Comanche International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPR Gomu and Comanche International.
Diversification Opportunities for CPR Gomu and Comanche International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CPR and Comanche is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CPR Gomu Industrial and Comanche International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comanche International and CPR Gomu 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 CPR Gomu Industrial are associated (or correlated) with Comanche International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comanche International has no effect on the direction of CPR Gomu i.e., CPR Gomu and Comanche International go up and down completely randomly.
Pair Corralation between CPR Gomu and Comanche International
Assuming the 90 days trading horizon CPR Gomu Industrial is expected to generate 0.27 times more return on investment than Comanche International. However, CPR Gomu Industrial is 3.76 times less risky than Comanche International. It trades about 0.23 of its potential returns per unit of risk. Comanche International Public is currently generating about -0.12 per unit of risk. If you would invest 290.00 in CPR Gomu Industrial on September 4, 2024 and sell it today you would earn a total of 62.00 from holding CPR Gomu Industrial or generate 21.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPR Gomu Industrial vs. Comanche International Public
Performance |
| Timeline |
| CPR Gomu Industrial |
| Comanche International |
CPR Gomu and Comanche International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPR Gomu and Comanche International
The main advantage of trading using opposite CPR Gomu and Comanche International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPR Gomu position performs unexpectedly, Comanche International 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 Comanche International will offset losses from the drop in Comanche International's long position.| CPR Gomu vs. Thanachart Capital Public | CPR Gomu vs. T S Flour | CPR Gomu vs. Ubis Public | CPR Gomu vs. Thai Vegetable Oil |
| Comanche International vs. Com7 PCL | Comanche International vs. Central Retail | Comanche International vs. Dohome Public | Comanche International vs. Bangkok Chain Hospital |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |