Correlation Between Axway Software and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both Axway Software and Bumrungrad Hospital 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 Axway Software and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axway Software SA and Bumrungrad Hospital Public, you can compare the effects of market volatilities on Axway Software and Bumrungrad Hospital 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 Axway Software with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and Bumrungrad Hospital.
Diversification Opportunities for Axway Software and Bumrungrad Hospital
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axway and Bumrungrad is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and Axway Software 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 Axway Software SA are associated (or correlated) with Bumrungrad Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumrungrad Hospital has no effect on the direction of Axway Software i.e., Axway Software and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between Axway Software and Bumrungrad Hospital
Assuming the 90 days trading horizon Axway Software is expected to generate 6.25 times less return on investment than Bumrungrad Hospital. But when comparing it to its historical volatility, Axway Software SA is 4.34 times less risky than Bumrungrad Hospital. It trades about 0.05 of its potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Bumrungrad Hospital Public on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Bumrungrad Hospital Public or generate 187.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Axway Software SA vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| Axway Software SA |
| Bumrungrad Hospital |
Axway Software and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and Bumrungrad Hospital
The main advantage of trading using opposite Axway Software and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software position performs unexpectedly, Bumrungrad Hospital 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 Bumrungrad Hospital will offset losses from the drop in Bumrungrad Hospital's long position.| Axway Software vs. Rocket Internet SE | Axway Software vs. Superior Plus Corp | Axway Software vs. NMI Holdings | Axway Software vs. Origin Agritech |
| Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |