Correlation Between CPN Retail and Sub Sri

Can any of the company-specific risk be diversified away by investing in both CPN Retail and Sub Sri 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 CPN Retail and Sub Sri into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CPN Retail Growth and Sub Sri Thai, you can compare the effects of market volatilities on CPN Retail and Sub Sri 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 CPN Retail with a short position of Sub Sri. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPN Retail and Sub Sri.

Diversification Opportunities for CPN Retail and Sub Sri

-0.03

Correlation Coefficient

CPN Retail  Sub Sri

Good diversification

The 3 months correlation between CPN and Sub is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CPN Retail Growth and Sub Sri Thai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sub Sri Thai and CPN 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 CPN Retail Growth are associated (or correlated) with Sub Sri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sub Sri Thai has no effect on the direction of CPN Retail i.e., CPN Retail and Sub Sri go up and down completely randomly.

Pair Corralation between CPN Retail and Sub Sri

Assuming the 90 days trading horizon CPN Retail Growth is expected to generate 3.87 times more return on investment than Sub Sri. However, CPN Retail is 3.87 times more volatile than Sub Sri Thai. It trades about 0.08 of its potential returns per unit of risk. Sub Sri Thai is currently generating about 0.17 per unit of risk. If you would invest  1,119  in CPN Retail Growth on September 3, 2024 and sell it today you would earn a total of  101.00  from holding CPN Retail Growth or generate 9.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CPN Retail Growth  vs.  Sub Sri Thai

CPN Retail Growth

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CPN Retail Growth are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, CPN Retail may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sub Sri Thai

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sub Sri Thai are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Sub Sri is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CPN Retail and Sub Sri

The main advantage of trading using opposite CPN Retail and Sub Sri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPN Retail position performs unexpectedly, Sub Sri 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 Sub Sri will offset losses from the drop in Sub Sri's long position.

The idea behind CPN Retail Growth and Sub Sri Thai pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..