Correlation Between Teka Construction and CPN Retail
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By analyzing existing cross correlation between Teka Construction PCL and CPN Retail Growth, you can compare the effects of market volatilities on Teka Construction 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 Teka Construction with a short position of CPN Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teka Construction and CPN Retail.
Diversification Opportunities for Teka Construction and CPN Retail
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Teka and CPN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Teka Construction PCL 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 Teka Construction 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 Teka Construction PCL 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 Teka Construction i.e., Teka Construction and CPN Retail go up and down completely randomly.
Pair Corralation between Teka Construction and CPN Retail
Assuming the 90 days trading horizon Teka Construction PCL is expected to under-perform the CPN Retail. But the stock apears to be less risky and, when comparing its historical volatility, Teka Construction PCL is 1.3 times less risky than CPN Retail. The stock trades about -0.08 of its potential returns per unit of risk. The CPN Retail Growth is currently generating about -0.01 of returns per unit of risk over similar time horizon. 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 | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Teka Construction PCL vs. CPN Retail Growth
Performance |
Timeline |
Teka Construction PCL |
CPN Retail Growth |
Teka Construction and CPN Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Teka Construction and CPN Retail
The main advantage of trading using opposite Teka Construction and CPN Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teka Construction 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 Teka Construction PCL 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.CPN Retail vs. Central Pattana Public | CPN Retail vs. Digital Telecommunications Infrastructure | CPN Retail vs. Impact Growth REIT | CPN Retail vs. WHA Premium Growth |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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