Correlation Between Peerapat Technology and CHAOSUA FOODS
Can any of the company-specific risk be diversified away by investing in both Peerapat Technology and CHAOSUA FOODS 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 CHAOSUA FOODS 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 CHAOSUA FOODS INDUSTRY, you can compare the effects of market volatilities on Peerapat Technology and CHAOSUA FOODS 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 CHAOSUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peerapat Technology and CHAOSUA FOODS.
Diversification Opportunities for Peerapat Technology and CHAOSUA FOODS
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peerapat and CHAOSUA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Peerapat Technology Public and CHAOSUA FOODS INDUSTRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAOSUA FOODS INDUSTRY 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 CHAOSUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAOSUA FOODS INDUSTRY has no effect on the direction of Peerapat Technology i.e., Peerapat Technology and CHAOSUA FOODS go up and down completely randomly.
Pair Corralation between Peerapat Technology and CHAOSUA FOODS
Assuming the 90 days trading horizon Peerapat Technology Public is expected to generate 0.8 times more return on investment than CHAOSUA FOODS. However, Peerapat Technology Public is 1.25 times less risky than CHAOSUA FOODS. It trades about 0.07 of its potential returns per unit of risk. CHAOSUA FOODS INDUSTRY is currently generating about -0.35 per unit of risk. If you would invest 141.00 in Peerapat Technology Public on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Peerapat Technology Public or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peerapat Technology Public vs. CHAOSUA FOODS INDUSTRY
Performance |
| Timeline |
| Peerapat Technology |
| CHAOSUA FOODS INDUSTRY |
Peerapat Technology and CHAOSUA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peerapat Technology and CHAOSUA FOODS
The main advantage of trading using opposite Peerapat Technology and CHAOSUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peerapat Technology position performs unexpectedly, CHAOSUA FOODS 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 CHAOSUA FOODS will offset losses from the drop in CHAOSUA FOODS'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 |
| CHAOSUA FOODS vs. AP Public | CHAOSUA FOODS vs. TRC Construction Public | CHAOSUA FOODS vs. Bangkok Expressway and | CHAOSUA FOODS vs. Lohakit Metal 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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