Correlation Between Peerapat Technology and IFS Capital
Can any of the company-specific risk be diversified away by investing in both Peerapat Technology and IFS Capital 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 IFS Capital 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 IFS Capital Public, you can compare the effects of market volatilities on Peerapat Technology and IFS Capital 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 IFS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peerapat Technology and IFS Capital.
Diversification Opportunities for Peerapat Technology and IFS Capital
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Peerapat and IFS is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Peerapat Technology Public and IFS Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IFS Capital 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 IFS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IFS Capital Public has no effect on the direction of Peerapat Technology i.e., Peerapat Technology and IFS Capital go up and down completely randomly.
Pair Corralation between Peerapat Technology and IFS Capital
Assuming the 90 days trading horizon Peerapat Technology Public is expected to generate 3.54 times more return on investment than IFS Capital. However, Peerapat Technology is 3.54 times more volatile than IFS Capital Public. It trades about 0.12 of its potential returns per unit of risk. IFS Capital Public is currently generating about 0.0 per unit of risk. If you would invest 137.00 in Peerapat Technology Public on August 31, 2024 and sell it today you would earn a total of 9.00 from holding Peerapat Technology Public or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peerapat Technology Public vs. IFS Capital Public
Performance |
| Timeline |
| Peerapat Technology |
| IFS Capital Public |
Peerapat Technology and IFS Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peerapat Technology and IFS Capital
The main advantage of trading using opposite Peerapat Technology and IFS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peerapat Technology position performs unexpectedly, IFS Capital 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 IFS Capital will offset losses from the drop in IFS Capital'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 |
| IFS Capital vs. TISCO Financial Group | IFS Capital vs. SCB X Public | IFS Capital vs. Bangkok Bank 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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