Correlation Between Peerapat Technology and 2S Metal
Can any of the company-specific risk be diversified away by investing in both Peerapat Technology and 2S Metal 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 Peerapat Technology and 2S Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peerapat Technology Public and 2S Metal Public, you can compare the effects of market volatilities on Peerapat Technology and 2S Metal 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 Peerapat Technology with a short position of 2S Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peerapat Technology and 2S Metal.
Diversification Opportunities for Peerapat Technology and 2S Metal
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peerapat and 2S Metal is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Peerapat Technology Public and 2S Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2S Metal Public and Peerapat 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 Peerapat Technology Public are associated (or correlated) with 2S Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2S Metal Public has no effect on the direction of Peerapat Technology i.e., Peerapat Technology and 2S Metal go up and down completely randomly.
Pair Corralation between Peerapat Technology and 2S Metal
Assuming the 90 days trading horizon Peerapat Technology Public is expected to under-perform the 2S Metal. In addition to that, Peerapat Technology is 3.48 times more volatile than 2S Metal Public. It trades about 0.0 of its total potential returns per unit of risk. 2S Metal Public is currently generating about 0.01 per unit of volatility. If you would invest 273.00 in 2S Metal Public on August 31, 2024 and sell it today you would earn a total of 5.00 from holding 2S Metal Public or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peerapat Technology Public vs. 2S Metal Public
Performance |
| Timeline |
| Peerapat Technology |
| 2S Metal Public |
Peerapat Technology and 2S Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peerapat Technology and 2S Metal
The main advantage of trading using opposite Peerapat Technology and 2S Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peerapat Technology position performs unexpectedly, 2S Metal 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 2S Metal will offset losses from the drop in 2S Metal's long position.| Peerapat Technology vs. Megachem Public | Peerapat Technology vs. M Vision Public | Peerapat Technology vs. NCL International Logistics | Peerapat Technology vs. Pioneer Motor Public |
| 2S Metal vs. Diamond Building Products | 2S Metal vs. MCS Steel Public | 2S Metal vs. Asia Green Energy | 2S Metal vs. Hwa Fong Rubber |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |