Correlation Between Qualitech Public and Peerapat Technology

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

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

Diversification Opportunities for Qualitech Public and Peerapat Technology

-0.22

Correlation Coefficient

Qualitech Public  Peerapat Technology

Very good diversification

The 3 months correlation between Qualitech and Peerapat is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Qualitech 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 Qualitech Public 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 Qualitech 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 Qualitech Public i.e., Qualitech Public and Peerapat Technology go up and down completely randomly.

Pair Corralation between Qualitech Public and Peerapat Technology

Assuming the 90 days trading horizon Qualitech Public is expected to generate 2.0 times more return on investment than Peerapat Technology. However, Qualitech Public is 2.0 times more volatile than Peerapat Technology Public. It trades about 0.36 of its potential returns per unit of risk. Peerapat Technology Public is currently generating about -0.22 per unit of risk. If you would invest  204.00  in Qualitech Public on October 13, 2024 and sell it today you would earn a total of  62.00  from holding Qualitech Public or generate 30.39% return on investment over 90 days.

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

Qualitech Public  vs.  Peerapat Technology Public

Qualitech Public

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Qualitech Public are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Qualitech Public disclosed solid returns over the last few months and may actually be approaching a breakup point.

Peerapat Technology

Risk-Adjusted Performance

0 of 100

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 latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Qualitech Public and Peerapat Technology

The main advantage of trading using opposite Qualitech Public and Peerapat Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qualitech Public 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 Qualitech Public 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.