Correlation Between Jay Mart and Peerapat Technology
Can any of the company-specific risk be diversified away by investing in both Jay Mart 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 Jay Mart and Peerapat Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jay Mart Public and Peerapat Technology Public, you can compare the effects of market volatilities on Jay Mart 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 Jay Mart with a short position of Peerapat Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jay Mart and Peerapat Technology.
Diversification Opportunities for Jay Mart and Peerapat Technology
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jay and Peerapat is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jay Mart 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 Jay Mart 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 Jay Mart 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 Jay Mart i.e., Jay Mart and Peerapat Technology go up and down completely randomly.
Pair Corralation between Jay Mart and Peerapat Technology
Assuming the 90 days trading horizon Jay Mart Public is expected to under-perform the Peerapat Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jay Mart Public is 1.35 times less risky than Peerapat Technology. The stock trades about -0.06 of its potential returns per unit of risk. The Peerapat Technology Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Peerapat Technology Public on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Peerapat Technology Public or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jay Mart Public vs. Peerapat Technology Public
Performance |
| Timeline |
| Jay Mart Public |
| Peerapat Technology |
Jay Mart and Peerapat Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jay Mart and Peerapat Technology
The main advantage of trading using opposite Jay Mart and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jay Mart 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.| Jay Mart vs. JMT Network Services | Jay Mart vs. Com7 PCL | Jay Mart vs. KCE Electronics Public | Jay Mart vs. Singer Thailand Public |
| Peerapat Technology vs. Sri Trang Agro Industry | Peerapat Technology vs. Jay Mart Public | Peerapat Technology vs. Com7 PCL | Peerapat Technology vs. Energy Absolute 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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