Correlation Between National Beverage and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both National Beverage 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 National Beverage and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and Bumrungrad Hospital Public, you can compare the effects of market volatilities on National Beverage 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 National Beverage with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Bumrungrad Hospital.
Diversification Opportunities for National Beverage and Bumrungrad Hospital
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Bumrungrad is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and National Beverage 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 National Beverage Corp 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 National Beverage i.e., National Beverage and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between National Beverage and Bumrungrad Hospital
Assuming the 90 days horizon National Beverage Corp is expected to generate 0.61 times more return on investment than Bumrungrad Hospital. However, National Beverage Corp is 1.64 times less risky than Bumrungrad Hospital. It trades about 0.29 of its potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about -0.34 per unit of risk. If you would invest 4,160 in National Beverage Corp on September 4, 2024 and sell it today you would earn a total of 500.00 from holding National Beverage Corp or generate 12.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
National Beverage Corp vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| National Beverage Corp |
| Bumrungrad Hospital |
National Beverage and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and Bumrungrad Hospital
The main advantage of trading using opposite National Beverage and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage 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.| National Beverage vs. Bumrungrad Hospital Public | National Beverage vs. CVS Health | National Beverage vs. Plastic Omnium | National Beverage vs. United Rentals |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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