Correlation Between Halcyon Technology and Peerapat Technology
Can any of the company-specific risk be diversified away by investing in both Halcyon Technology and Peerapat Technology 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 Halcyon Technology and Peerapat Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halcyon Technology Public and Peerapat Technology Public, you can compare the effects of market volatilities on Halcyon Technology and Peerapat Technology 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 Halcyon Technology with a short position of Peerapat Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halcyon Technology and Peerapat Technology.
Diversification Opportunities for Halcyon Technology and Peerapat Technology
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Halcyon and Peerapat is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Halcyon Technology Public and Peerapat Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peerapat Technology and Halcyon Technology 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 Halcyon Technology Public are associated (or correlated) with Peerapat Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peerapat Technology has no effect on the direction of Halcyon Technology i.e., Halcyon Technology and Peerapat Technology go up and down completely randomly.
Pair Corralation between Halcyon Technology and Peerapat Technology
Assuming the 90 days trading horizon Halcyon Technology Public is expected to generate 0.97 times more return on investment than Peerapat Technology. However, Halcyon Technology Public is 1.03 times less risky than Peerapat Technology. It trades about 0.07 of its potential returns per unit of risk. Peerapat Technology Public is currently generating about -0.03 per unit of risk. If you would invest 238.00 in Halcyon Technology Public on August 28, 2024 and sell it today you would earn a total of 182.00 from holding Halcyon Technology Public or generate 76.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
Halcyon Technology Public vs. Peerapat Technology Public
Performance |
| Timeline |
| Halcyon Technology Public |
| Peerapat Technology |
Halcyon Technology and Peerapat Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halcyon Technology and Peerapat Technology
The main advantage of trading using opposite Halcyon Technology and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halcyon Technology position performs unexpectedly, Peerapat Technology 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 Peerapat Technology will offset losses from the drop in Peerapat Technology's long position.| Halcyon Technology vs. Tata Steel Public | Halcyon Technology vs. Thaifoods Group Public | Halcyon Technology vs. TMT Steel Public | Halcyon Technology vs. The Erawan Group |
| Peerapat Technology vs. Megachem Public | Peerapat Technology vs. M Vision Public | Peerapat Technology vs. NCL International Logistics | Peerapat Technology vs. Pioneer Motor Public |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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