Correlation Between Turnkey Communication and Charoen Pokphand

Can any of the company-specific risk be diversified away by investing in both Turnkey Communication and Charoen Pokphand 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 Turnkey Communication and Charoen Pokphand into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turnkey Communication Services and Charoen Pokphand Foods, you can compare the effects of market volatilities on Turnkey Communication and Charoen Pokphand 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 Turnkey Communication with a short position of Charoen Pokphand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turnkey Communication and Charoen Pokphand.

Diversification Opportunities for Turnkey Communication and Charoen Pokphand

-0.42

Correlation Coefficient

Turnkey Communication  Charoen Pokphand

Very good diversification

The 3 months correlation between Turnkey and Charoen is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Turnkey Communication Services and Charoen Pokphand Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charoen Pokphand Foods and Turnkey Communication 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 Turnkey Communication Services are associated (or correlated) with Charoen Pokphand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charoen Pokphand Foods has no effect on the direction of Turnkey Communication i.e., Turnkey Communication and Charoen Pokphand go up and down completely randomly.

Pair Corralation between Turnkey Communication and Charoen Pokphand

Assuming the 90 days trading horizon Turnkey Communication Services is expected to generate 1.63 times more return on investment than Charoen Pokphand. However, Turnkey Communication is 1.63 times more volatile than Charoen Pokphand Foods. It trades about 0.16 of its potential returns per unit of risk. Charoen Pokphand Foods is currently generating about -0.06 per unit of risk. If you would invest  749.00  in Turnkey Communication Services on April 23, 2025 and sell it today you would earn a total of  251.00  from holding Turnkey Communication Services or generate 33.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Turnkey Communication Services  vs.  Charoen Pokphand Foods

Turnkey Communication

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turnkey Communication Services are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Turnkey Communication disclosed solid returns over the last few months and may actually be approaching a breakup point.

Charoen Pokphand Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Charoen Pokphand Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak 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 Turnkey Communication and Charoen Pokphand

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

The idea behind Turnkey Communication Services and Charoen Pokphand Foods 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.