Correlation Between Lotus Retail and CPN Retail
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By analyzing existing cross correlation between Lotus Retail Growth and CPN Retail Growth, you can compare the effects of market volatilities on Lotus Retail and CPN 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 Lotus Retail with a short position of CPN Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Retail and CPN Retail.
Diversification Opportunities for Lotus Retail and CPN Retail
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lotus and CPN is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Retail Growth and CPN Retail Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPN Retail Growth and Lotus 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 Lotus Retail Growth are associated (or correlated) with CPN Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPN Retail Growth has no effect on the direction of Lotus Retail i.e., Lotus Retail and CPN Retail go up and down completely randomly.
Pair Corralation between Lotus Retail and CPN Retail
Assuming the 90 days trading horizon Lotus Retail is expected to generate 1.01 times less return on investment than CPN Retail. But when comparing it to its historical volatility, Lotus Retail Growth is 1.39 times less risky than CPN Retail. It trades about 0.03 of its potential returns per unit of risk. CPN Retail Growth is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,126 in CPN Retail Growth on August 31, 2024 and sell it today you would earn a total of 94.00 from holding CPN Retail Growth or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.35% |
| Values | Daily Returns |
Lotus Retail Growth vs. CPN Retail Growth
Performance |
| Timeline |
| Lotus Retail Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CPN Retail Growth |
Lotus Retail and CPN Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Retail and CPN Retail
The main advantage of trading using opposite Lotus Retail and CPN Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Retail position performs unexpectedly, CPN 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 CPN Retail will offset losses from the drop in CPN Retail's long position.| Lotus Retail vs. CPN Retail Growth | Lotus Retail vs. Ticon Freehold and | Lotus Retail vs. WHA Premium Growth | Lotus Retail vs. Major Cineplex Lifestyle |
| CPN Retail vs. Central Pattana Public | CPN Retail vs. Digital Telecommunications Infrastructure | CPN Retail vs. Impact Growth REIT | CPN Retail vs. WHA Premium Growth |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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