Correlation Between Indara Insurance and CPN Retail

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

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

Diversification Opportunities for Indara Insurance and CPN Retail

0.6

Correlation Coefficient

Indara Insurance  CPN Retail

Poor diversification

The 3 months correlation between Indara and CPN is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Indara Insurance Public and CPN Retail Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPN Retail Growth and Indara Insurance 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 Indara Insurance Public are associated (or correlated) with CPN Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPN Retail Growth has no effect on the direction of Indara Insurance i.e., Indara Insurance and CPN Retail go up and down completely randomly.

Pair Corralation between Indara Insurance and CPN Retail

Assuming the 90 days trading horizon Indara Insurance Public is expected to under-perform the CPN Retail. In addition to that, Indara Insurance is 1.3 times more volatile than CPN Retail Growth. It trades about -0.18 of its total potential returns per unit of risk. CPN Retail Growth is currently generating about -0.01 per unit of volatility. If you would invest  1,176  in CPN Retail Growth on April 24, 2025 and sell it today you would lose (16.00) from holding CPN Retail Growth or give up 1.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.31%
Values	Daily Returns

Indara Insurance Public  vs.  CPN Retail Growth

Indara Insurance Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Indara Insurance Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting 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.

CPN Retail Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days CPN Retail Growth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CPN Retail is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Indara Insurance and CPN Retail

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

The idea behind Indara Insurance Public and CPN Retail Growth 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.