Correlation Between CP ALL and Singer Thailand

Can any of the company-specific risk be diversified away by investing in both CP ALL and Singer Thailand 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 Singer Thailand 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 Singer Thailand Public, you can compare the effects of market volatilities on CP ALL and Singer Thailand 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 Singer Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of CP ALL and Singer Thailand.

Diversification Opportunities for CP ALL and Singer Thailand

0.89

Correlation Coefficient

CP ALL  Singer Thailand

Very poor diversification

The 3 months correlation between CPALL and Singer is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CP ALL Public and Singer Thailand Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singer Thailand Public 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 Singer Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singer Thailand Public has no effect on the direction of CP ALL i.e., CP ALL and Singer Thailand go up and down completely randomly.

Pair Corralation between CP ALL and Singer Thailand

Assuming the 90 days trading horizon CP ALL Public is expected to generate 0.51 times more return on investment than Singer Thailand. However, CP ALL Public is 1.95 times less risky than Singer Thailand. It trades about -0.03 of its potential returns per unit of risk. Singer Thailand Public is currently generating about -0.09 per unit of risk. If you would invest  4,940  in CP ALL Public on April 22, 2025 and sell it today you would lose (190.00) from holding CP ALL Public or give up 3.85% of portfolio value over 90 days.

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

CP ALL Public  vs.  Singer Thailand Public

CP ALL Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days CP ALL Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, CP ALL is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Singer Thailand Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singer Thailand Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CP ALL and Singer Thailand

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

The idea behind CP ALL Public and Singer Thailand 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.