Correlation Between Central Pattana and Ingress Industrial

Can any of the company-specific risk be diversified away by investing in both Central Pattana and Ingress Industrial 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 Central Pattana and Ingress Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Central Pattana Public and Ingress Industrial Public, you can compare the effects of market volatilities on Central Pattana and Ingress Industrial 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 Central Pattana with a short position of Ingress Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and Ingress Industrial.

Diversification Opportunities for Central Pattana and Ingress Industrial

0.85

Correlation Coefficient

Central Pattana  Ingress Industrial

Very poor diversification

The 3 months correlation between Central and Ingress is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and Ingress Industrial Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingress Industrial Public and Central Pattana 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 Central Pattana Public are associated (or correlated) with Ingress Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingress Industrial Public has no effect on the direction of Central Pattana i.e., Central Pattana and Ingress Industrial go up and down completely randomly.

Pair Corralation between Central Pattana and Ingress Industrial

Assuming the 90 days trading horizon Central Pattana Public is expected to under-perform the Ingress Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Central Pattana Public is 31.49 times less risky than Ingress Industrial. The stock trades about -0.01 of its potential returns per unit of risk. The Ingress Industrial Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  54.00  in Ingress Industrial Public on September 12, 2024 and sell it today you would lose (21.00) from holding Ingress Industrial Public or give up 38.89% of portfolio value over 90 days.

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

Central Pattana Public  vs.  Ingress Industrial Public

Central Pattana Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Central Pattana Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Ingress Industrial Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ingress Industrial Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Central Pattana and Ingress Industrial

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

The idea behind Central Pattana Public and Ingress Industrial Public 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.