Correlation Between Peerapat Technology and Sirakorn PCL
Can any of the company-specific risk be diversified away by investing in both Peerapat Technology and Sirakorn PCL 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 Sirakorn PCL 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 Sirakorn PCL, you can compare the effects of market volatilities on Peerapat Technology and Sirakorn PCL 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 Sirakorn PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peerapat Technology and Sirakorn PCL.
Diversification Opportunities for Peerapat Technology and Sirakorn PCL
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Peerapat and Sirakorn is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Peerapat Technology Public and Sirakorn PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirakorn PCL 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 Sirakorn PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirakorn PCL has no effect on the direction of Peerapat Technology i.e., Peerapat Technology and Sirakorn PCL go up and down completely randomly.
Pair Corralation between Peerapat Technology and Sirakorn PCL
Assuming the 90 days trading horizon Peerapat Technology Public is expected to under-perform the Sirakorn PCL. In addition to that, Peerapat Technology is 1.14 times more volatile than Sirakorn PCL. It trades about -0.15 of its total potential returns per unit of risk. Sirakorn PCL is currently generating about 0.01 per unit of volatility. If you would invest 60.00 in Sirakorn PCL on November 30, 2024 and sell it today you would earn a total of 0.00 from holding Sirakorn PCL or generate 0.0% 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. Sirakorn PCL
Performance |
| Timeline |
| Peerapat Technology |
| Sirakorn PCL |
Peerapat Technology and Sirakorn PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peerapat Technology and Sirakorn PCL
The main advantage of trading using opposite Peerapat Technology and Sirakorn PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peerapat Technology position performs unexpectedly, Sirakorn PCL 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 Sirakorn PCL will offset losses from the drop in Sirakorn PCL'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 |
| Sirakorn PCL vs. Peerapat Technology Public | Sirakorn PCL vs. Shrinkflex Public | Sirakorn PCL vs. SiamEast Solutions Public | Sirakorn PCL vs. Smart Concrete 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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