Correlation Between Kiattana Transport and Peerapat Technology
Can any of the company-specific risk be diversified away by investing in both Kiattana Transport 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 Kiattana Transport and Peerapat Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiattana Transport Public and Peerapat Technology Public, you can compare the effects of market volatilities on Kiattana Transport 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 Kiattana Transport with a short position of Peerapat Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiattana Transport and Peerapat Technology.
Diversification Opportunities for Kiattana Transport and Peerapat Technology
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kiattana and Peerapat is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kiattana Transport 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 Kiattana Transport 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 Kiattana Transport 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 Kiattana Transport i.e., Kiattana Transport and Peerapat Technology go up and down completely randomly.
Pair Corralation between Kiattana Transport and Peerapat Technology
Assuming the 90 days trading horizon Kiattana Transport Public is expected to generate 1.55 times more return on investment than Peerapat Technology. However, Kiattana Transport is 1.55 times more volatile than Peerapat Technology Public. It trades about 0.01 of its potential returns per unit of risk. Peerapat Technology Public is currently generating about -0.34 per unit of risk. If you would invest 32.00 in Kiattana Transport Public on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Kiattana Transport Public or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.0% |
Values | Daily Returns |
Kiattana Transport Public vs. Peerapat Technology Public
Performance |
Timeline |
Kiattana Transport Public |
Peerapat Technology |
Kiattana Transport and Peerapat Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kiattana Transport and Peerapat Technology
The main advantage of trading using opposite Kiattana Transport and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiattana Transport 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.Kiattana Transport vs. Namyong Terminal PCL | Kiattana Transport vs. Hwa Fong Rubber | Kiattana Transport vs. Karmarts Public | Kiattana Transport vs. Jay Mart Public |
Peerapat Technology vs. PTT Public | Peerapat Technology vs. The Siam Commercial | Peerapat Technology vs. Airports of Thailand | Peerapat Technology vs. CP ALL 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |