Correlation Between Syntec Construction and Peerapat Technology
Can any of the company-specific risk be diversified away by investing in both Syntec Construction 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 Syntec Construction and Peerapat Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syntec Construction Public and Peerapat Technology Public, you can compare the effects of market volatilities on Syntec Construction 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 Syntec Construction with a short position of Peerapat Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syntec Construction and Peerapat Technology.
Diversification Opportunities for Syntec Construction and Peerapat Technology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Syntec and Peerapat is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Syntec Construction Public and Peerapat Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peerapat Technology and Syntec Construction 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 Syntec Construction Public 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 Syntec Construction i.e., Syntec Construction and Peerapat Technology go up and down completely randomly.
Pair Corralation between Syntec Construction and Peerapat Technology
Assuming the 90 days trading horizon Syntec Construction Public is expected to generate 0.45 times more return on investment than Peerapat Technology. However, Syntec Construction Public is 2.24 times less risky than Peerapat Technology. It trades about -0.02 of its potential returns per unit of risk. Peerapat Technology Public is currently generating about -0.05 per unit of risk. If you would invest 166.00 in Syntec Construction Public on September 2, 2024 and sell it today you would lose (6.00) from holding Syntec Construction Public or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syntec Construction Public vs. Peerapat Technology Public
Performance |
| Timeline |
| Syntec Construction |
| Peerapat Technology |
Syntec Construction and Peerapat Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syntec Construction and Peerapat Technology
The main advantage of trading using opposite Syntec Construction and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syntec Construction 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.| Syntec Construction vs. Gulf Energy Development | Syntec Construction vs. Energy Absolute Public | Syntec Construction vs. WHA Public | Syntec Construction vs. Bangkok Expressway and |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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