Correlation Between Bangkok Sheet and Peerapat Technology

Can any of the company-specific risk be diversified away by investing in both Bangkok Sheet 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 Bangkok Sheet and Peerapat Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bangkok Sheet Metal and Peerapat Technology Public, you can compare the effects of market volatilities on Bangkok Sheet 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 Bangkok Sheet with a short position of Peerapat Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and Peerapat Technology.

Diversification Opportunities for Bangkok Sheet and Peerapat Technology

0.48

Correlation Coefficient

Bangkok Sheet  Peerapat Technology

Very weak diversification

The 3 months correlation between Bangkok and Peerapat is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and Peerapat Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peerapat Technology and Bangkok Sheet 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 Bangkok Sheet Metal 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 Bangkok Sheet i.e., Bangkok Sheet and Peerapat Technology go up and down completely randomly.

Pair Corralation between Bangkok Sheet and Peerapat Technology

Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 0.99 times more return on investment than Peerapat Technology. However, Bangkok Sheet Metal is 1.01 times less risky than Peerapat Technology. It trades about -0.09 of its potential returns per unit of risk. Peerapat Technology Public is currently generating about -0.11 per unit of risk. If you would invest  301.00  in Bangkok Sheet Metal on December 28, 2024 and sell it today you would lose (35.00) from holding Bangkok Sheet Metal or give up 11.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bangkok Sheet Metal  vs.  Peerapat Technology Public

Bangkok Sheet Metal

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bangkok Sheet Metal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Peerapat Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Peerapat Technology Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bangkok Sheet and Peerapat Technology

The main advantage of trading using opposite Bangkok Sheet and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Sheet 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.

The idea behind Bangkok Sheet Metal and Peerapat Technology Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.