Correlation Between Sirakorn PCL and Peerapat Technology
Can any of the company-specific risk be diversified away by investing in both Sirakorn PCL 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 Sirakorn PCL and Peerapat Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sirakorn PCL and Peerapat Technology Public, you can compare the effects of market volatilities on Sirakorn PCL 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 Sirakorn PCL with a short position of Peerapat Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sirakorn PCL and Peerapat Technology.
Diversification Opportunities for Sirakorn PCL and Peerapat Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sirakorn and Peerapat is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sirakorn PCL and Peerapat Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peerapat Technology and Sirakorn PCL 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 Sirakorn PCL 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 Sirakorn PCL i.e., Sirakorn PCL and Peerapat Technology go up and down completely randomly.
Pair Corralation between Sirakorn PCL and Peerapat Technology
Assuming the 90 days horizon Sirakorn PCL is expected to under-perform the Peerapat Technology. In addition to that, Sirakorn PCL is 1.07 times more volatile than Peerapat Technology Public. It trades about -0.18 of its total potential returns per unit of risk. Peerapat Technology Public is currently generating about 0.07 per unit of volatility. If you would invest 141.00 in Peerapat Technology Public on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Peerapat Technology Public or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sirakorn PCL vs. Peerapat Technology Public
Performance |
| Timeline |
| Sirakorn PCL |
| Peerapat Technology |
Sirakorn PCL and Peerapat Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sirakorn PCL and Peerapat Technology
The main advantage of trading using opposite Sirakorn PCL and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sirakorn PCL 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.| Sirakorn PCL vs. Peerapat Technology Public | Sirakorn PCL vs. Shrinkflex Public | Sirakorn PCL vs. SiamEast Solutions Public | Sirakorn PCL vs. Smart Concrete Public |
| Peerapat Technology vs. Megachem Public | Peerapat Technology vs. M Vision Public | Peerapat Technology vs. NCL International Logistics | Peerapat Technology vs. Pioneer Motor 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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