Correlation Between SC Asset and Peerapat Technology
Can any of the company-specific risk be diversified away by investing in both SC Asset and Peerapat Technology 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 SC Asset and Peerapat Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SC Asset and Peerapat Technology Public, you can compare the effects of market volatilities on SC Asset and Peerapat Technology 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 SC Asset with a short position of Peerapat Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SC Asset and Peerapat Technology.
Diversification Opportunities for SC Asset and Peerapat Technology
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SC Asset and Peerapat is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SC Asset and Peerapat Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peerapat Technology and SC Asset 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 SC Asset are associated (or correlated) with Peerapat Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peerapat Technology has no effect on the direction of SC Asset i.e., SC Asset and Peerapat Technology go up and down completely randomly.
Pair Corralation between SC Asset and Peerapat Technology
Assuming the 90 days horizon SC Asset is expected to generate 19.19 times more return on investment than Peerapat Technology. However, SC Asset is 19.19 times more volatile than Peerapat Technology Public. It trades about 0.05 of its potential returns per unit of risk. Peerapat Technology Public is currently generating about -0.02 per unit of risk. If you would invest 388.00 in SC Asset on September 12, 2024 and sell it today you would lose (96.00) from holding SC Asset or give up 24.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SC Asset vs. Peerapat Technology Public
Performance |
| Timeline |
| SC Asset |
| Peerapat Technology |
SC Asset and Peerapat Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SC Asset and Peerapat Technology
The main advantage of trading using opposite SC Asset and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SC Asset position performs unexpectedly, Peerapat Technology 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 Peerapat Technology will offset losses from the drop in Peerapat Technology's long position.| SC Asset vs. Phatra Leasing Public | SC Asset vs. Mitsib Leasing Public | SC Asset vs. AJ Advance Technology | SC Asset vs. Global Green Chemicals |
| Peerapat Technology vs. Sri Trang Agro Industry | Peerapat Technology vs. Jay Mart Public | Peerapat Technology vs. Com7 PCL | Peerapat Technology vs. Energy Absolute 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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