Correlation Between WHA Premium and CPN Retail
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By analyzing existing cross correlation between WHA Premium Growth and CPN Retail Growth, you can compare the effects of market volatilities on WHA Premium 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 WHA Premium with a short position of CPN Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Premium and CPN Retail.
Diversification Opportunities for WHA Premium and CPN Retail
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WHA and CPN is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding WHA Premium 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 WHA Premium 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 WHA Premium 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 WHA Premium i.e., WHA Premium and CPN Retail go up and down completely randomly.
Pair Corralation between WHA Premium and CPN Retail
Assuming the 90 days trading horizon WHA Premium is expected to generate 2.17 times less return on investment than CPN Retail. But when comparing it to its historical volatility, WHA Premium Growth is 1.42 times less risky than CPN Retail. It trades about 0.04 of its potential returns per unit of risk. CPN Retail Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,076 in CPN Retail Growth on November 3, 2024 and sell it today you would earn a total of 134.00 from holding CPN Retail Growth or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Premium Growth vs. CPN Retail Growth
Performance |
| Timeline |
| WHA Premium Growth |
| CPN Retail Growth |
WHA Premium and CPN Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Premium and CPN Retail
The main advantage of trading using opposite WHA Premium and CPN Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Premium 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.| WHA Premium vs. WHA Public | WHA Premium vs. CPN Retail Growth | WHA Premium vs. Impact Growth REIT | WHA Premium vs. Digital Telecommunications Infrastructure |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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