Correlation Between Peerapat Technology and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Peerapat Technology and Siam Cement 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 Siam Cement 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 The Siam Cement, you can compare the effects of market volatilities on Peerapat Technology and Siam Cement 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 Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peerapat Technology and Siam Cement.
Diversification Opportunities for Peerapat Technology and Siam Cement
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Peerapat and Siam is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Peerapat Technology Public and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement 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 Siam Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Cement has no effect on the direction of Peerapat Technology i.e., Peerapat Technology and Siam Cement go up and down completely randomly.
Pair Corralation between Peerapat Technology and Siam Cement
Assuming the 90 days trading horizon Peerapat Technology Public is expected to generate 1.56 times more return on investment than Siam Cement. However, Peerapat Technology is 1.56 times more volatile than The Siam Cement. It trades about 0.13 of its potential returns per unit of risk. The Siam Cement is currently generating about -0.36 per unit of risk. If you would invest 132.00 in Peerapat Technology Public on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Peerapat Technology Public or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peerapat Technology Public vs. The Siam Cement
Performance |
| Timeline |
| Peerapat Technology |
| Siam Cement |
Peerapat Technology and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peerapat Technology and Siam Cement
The main advantage of trading using opposite Peerapat Technology and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peerapat Technology position performs unexpectedly, Siam Cement 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 Siam Cement will offset losses from the drop in Siam Cement'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 |
| Siam Cement vs. Thantawan Industry Public | Siam Cement vs. The Erawan Group | Siam Cement vs. Jay Mart Public | Siam Cement vs. Airports of Thailand |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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