Correlation Between CP ALL and Synergetic Auto
Can any of the company-specific risk be diversified away by investing in both CP ALL and Synergetic Auto 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 CP ALL and Synergetic Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CP ALL Public and Synergetic Auto Performance, you can compare the effects of market volatilities on CP ALL and Synergetic Auto 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 Synergetic Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Synergetic Auto.
Diversification Opportunities for CP ALL and Synergetic Auto
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CPALL and Synergetic is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Synergetic Auto Performance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synergetic Auto Perf 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 Synergetic Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synergetic Auto Perf has no effect on the direction of CP ALL i.e., CP ALL and Synergetic Auto go up and down completely randomly.
Pair Corralation between CP ALL and Synergetic Auto
Assuming the 90 days trading horizon CP ALL Public is expected to generate 0.75 times more return on investment than Synergetic Auto. However, CP ALL Public is 1.34 times less risky than Synergetic Auto. It trades about 0.18 of its potential returns per unit of risk. Synergetic Auto Performance is currently generating about -0.07 per unit of risk. If you would invest 5,578 in CP ALL Public on February 26, 2024 and sell it today you would earn a total of 272.00 from holding CP ALL Public or generate 4.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 94.74% |
Values | Daily Returns |
CP ALL Public vs. Synergetic Auto Performance
Performance |
Timeline |
CP ALL Public |
Synergetic Auto Perf |
CP ALL and Synergetic Auto Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CP ALL and Synergetic Auto
The main advantage of trading using opposite CP ALL and Synergetic Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CP ALL position performs unexpectedly, Synergetic Auto 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 Synergetic Auto will offset losses from the drop in Synergetic Auto's long position.CP ALL vs. Amanah Leasing Public | CP ALL vs. Asia Green Energy | CP ALL vs. Asia Precision Public | CP ALL vs. Country Group Holdings |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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