Correlation Between KERRY EXPRESS and CENTRAL RETAIL
Can any of the company-specific risk be diversified away by investing in both KERRY EXPRESS and CENTRAL RETAIL 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 KERRY EXPRESS and CENTRAL RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KERRY EXPRESS and CENTRAL RETAIL P, you can compare the effects of market volatilities on KERRY EXPRESS and CENTRAL RETAIL 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 KERRY EXPRESS with a short position of CENTRAL RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of KERRY EXPRESS and CENTRAL RETAIL.
Diversification Opportunities for KERRY EXPRESS and CENTRAL RETAIL
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KERRY and CENTRAL is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding KERRY EXPRESS and CENTRAL RETAIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL RETAIL P and KERRY EXPRESS 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 KERRY EXPRESS are associated (or correlated) with CENTRAL RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL RETAIL P has no effect on the direction of KERRY EXPRESS i.e., KERRY EXPRESS and CENTRAL RETAIL go up and down completely randomly.
Pair Corralation between KERRY EXPRESS and CENTRAL RETAIL
Assuming the 90 days trading horizon KERRY EXPRESS is expected to under-perform the CENTRAL RETAIL. In addition to that, KERRY EXPRESS is 5.69 times more volatile than CENTRAL RETAIL P. It trades about -0.14 of its total potential returns per unit of risk. CENTRAL RETAIL P is currently generating about -0.09 per unit of volatility. If you would invest 3,925 in CENTRAL RETAIL P on September 12, 2024 and sell it today you would lose (525.00) from holding CENTRAL RETAIL P or give up 13.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KERRY EXPRESS vs. CENTRAL RETAIL P
Performance |
| Timeline |
| KERRY EXPRESS |
| CENTRAL RETAIL P |
KERRY EXPRESS and CENTRAL RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KERRY EXPRESS and CENTRAL RETAIL
The main advantage of trading using opposite KERRY EXPRESS and CENTRAL RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KERRY EXPRESS position performs unexpectedly, CENTRAL RETAIL 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 CENTRAL RETAIL will offset losses from the drop in CENTRAL RETAIL's long position.| KERRY EXPRESS vs. Mega Lifesciences Public | KERRY EXPRESS vs. Jay Mart Public | KERRY EXPRESS vs. AP Public | KERRY EXPRESS vs. KCE Electronics Public |
| CENTRAL RETAIL vs. PTT Oil and | CENTRAL RETAIL vs. Delta Electronics Public | CENTRAL RETAIL vs. Com7 PCL | CENTRAL RETAIL vs. The Erawan Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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