Correlation Between Peerapat Technology and Heng Leasing
Can any of the company-specific risk be diversified away by investing in both Peerapat Technology and Heng Leasing 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 Heng Leasing 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 Heng Leasing Capital, you can compare the effects of market volatilities on Peerapat Technology and Heng Leasing 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 Heng Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peerapat Technology and Heng Leasing.
Diversification Opportunities for Peerapat Technology and Heng Leasing
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peerapat and Heng is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Peerapat Technology Public and Heng Leasing Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heng Leasing Capital 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 Heng Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heng Leasing Capital has no effect on the direction of Peerapat Technology i.e., Peerapat Technology and Heng Leasing go up and down completely randomly.
Pair Corralation between Peerapat Technology and Heng Leasing
Assuming the 90 days trading horizon Peerapat Technology Public is expected to generate 1.08 times more return on investment than Heng Leasing. However, Peerapat Technology is 1.08 times more volatile than Heng Leasing Capital. It trades about -0.03 of its potential returns per unit of risk. Heng Leasing Capital is currently generating about -0.07 per unit of risk. If you would invest 222.00 in Peerapat Technology Public on August 28, 2024 and sell it today you would lose (76.00) from holding Peerapat Technology Public or give up 34.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
Peerapat Technology Public vs. Heng Leasing Capital
Performance |
| Timeline |
| Peerapat Technology |
| Heng Leasing Capital |
Peerapat Technology and Heng Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peerapat Technology and Heng Leasing
The main advantage of trading using opposite Peerapat Technology and Heng Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peerapat Technology position performs unexpectedly, Heng Leasing 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 Heng Leasing will offset losses from the drop in Heng Leasing'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 |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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