Correlation Between Mena Transport and Peerapat Technology
Can any of the company-specific risk be diversified away by investing in both Mena Transport 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 Mena Transport and Peerapat Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mena Transport Public and Peerapat Technology Public, you can compare the effects of market volatilities on Mena Transport 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 Mena Transport with a short position of Peerapat Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and Peerapat Technology.
Diversification Opportunities for Mena Transport and Peerapat Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mena and Peerapat is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport 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 Mena Transport 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 Mena Transport 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 Mena Transport i.e., Mena Transport and Peerapat Technology go up and down completely randomly.
Pair Corralation between Mena Transport and Peerapat Technology
Assuming the 90 days trading horizon Mena Transport Public is expected to under-perform the Peerapat Technology. In addition to that, Mena Transport is 1.78 times more volatile than Peerapat Technology Public. It trades about -0.25 of its total potential returns per unit of risk. Peerapat Technology Public is currently generating about -0.14 per unit of volatility. If you would invest 115.00 in Peerapat Technology Public on January 18, 2025 and sell it today you would lose (6.00) from holding Peerapat Technology Public or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mena Transport Public vs. Peerapat Technology Public
Performance |
| Timeline |
| Mena Transport Public |
| Peerapat Technology |
Mena Transport and Peerapat Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mena Transport and Peerapat Technology
The main advantage of trading using opposite Mena Transport and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport 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.| Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Karmarts Public | Mena Transport vs. Jay Mart Public | Mena Transport vs. IRPC Public |
| Peerapat Technology vs. Megachem Public | Peerapat Technology vs. Pioneer Motor Public | Peerapat Technology vs. Thai Metal Drum | Peerapat Technology vs. Heng Leasing Capital |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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