Correlation Between CP ALL and Siam Commercial
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By analyzing existing cross correlation between CP ALL Public and The Siam Commercial, you can compare the effects of market volatilities on CP ALL and Siam Commercial 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 CP ALL with a short position of Siam Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Siam Commercial.
Diversification Opportunities for CP ALL and Siam Commercial
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between CPALL-R and Siam is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and The Siam Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Commercial and CP ALL 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 CP ALL Public are associated (or correlated) with Siam Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Commercial has no effect on the direction of CP ALL i.e., CP ALL and Siam Commercial go up and down completely randomly.
Pair Corralation between CP ALL and Siam Commercial
Assuming the 90 days trading horizon CP ALL Public is expected to generate 0.88 times more return on investment than Siam Commercial. However, CP ALL Public is 1.14 times less risky than Siam Commercial. It trades about 0.2 of its potential returns per unit of risk. The Siam Commercial is currently generating about -0.22 per unit of risk. If you would invest 5,475 in CP ALL Public on May 5, 2024 and sell it today you would earn a total of 275.00 from holding CP ALL Public or generate 5.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CP ALL Public vs. The Siam Commercial
Performance |
Timeline |
CP ALL Public |
Siam Commercial |
CP ALL and Siam Commercial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CP ALL and Siam Commercial
The main advantage of trading using opposite CP ALL and Siam Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Siam Commercial 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 Siam Commercial will offset losses from the drop in Siam Commercial's long position.CP ALL vs. Airports of Thailand | CP ALL vs. CP ALL Public | CP ALL vs. Charoen Pokphand Foods | CP ALL vs. PTT Public |
Siam Commercial vs. PTT Public | Siam Commercial vs. CP ALL Public | Siam Commercial vs. SCB X Public | Siam Commercial vs. Airports of Thailand |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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