Correlation Between Central Retail and Copperwired Public
Can any of the company-specific risk be diversified away by investing in both Central Retail and Copperwired 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 Retail and Copperwired Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Retail and Copperwired Public, you can compare the effects of market volatilities on Central Retail and Copperwired 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 Retail with a short position of Copperwired Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Retail and Copperwired Public.
Diversification Opportunities for Central Retail and Copperwired Public
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Central and Copperwired is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Central Retail and Copperwired Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperwired Public and Central Retail 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 Retail are associated (or correlated) with Copperwired Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperwired Public has no effect on the direction of Central Retail i.e., Central Retail and Copperwired Public go up and down completely randomly.
Pair Corralation between Central Retail and Copperwired Public
Assuming the 90 days trading horizon Central Retail is expected to generate 0.79 times more return on investment than Copperwired Public. However, Central Retail is 1.27 times less risky than Copperwired Public. It trades about -0.02 of its potential returns per unit of risk. Copperwired Public is currently generating about -0.03 per unit of risk. If you would invest 4,206 in Central Retail on August 29, 2024 and sell it today you would lose (806.00) from holding Central Retail or give up 19.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Retail vs. Copperwired Public
Performance |
| Timeline |
| Central Retail |
| Copperwired Public |
Central Retail and Copperwired Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Retail and Copperwired Public
The main advantage of trading using opposite Central Retail and Copperwired Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Retail position performs unexpectedly, Copperwired 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 Copperwired Public will offset losses from the drop in Copperwired Public's long position.| Central Retail vs. SCG PACKAGING PCL NVDR | Central Retail vs. CK Power Public | Central Retail vs. Thai Metal Drum | Central Retail vs. Country Group Holdings |
| Copperwired Public vs. Com7 PCL | Copperwired Public vs. Central Retail | Copperwired Public vs. Dohome Public | Copperwired Public 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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