Correlation Between MEDICAL FACILITIES and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and THAI BEVERAGE 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 MEDICAL FACILITIES and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and THAI BEVERAGE, you can compare the effects of market volatilities on MEDICAL FACILITIES and THAI BEVERAGE 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 MEDICAL FACILITIES with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and THAI BEVERAGE.
Diversification Opportunities for MEDICAL FACILITIES and THAI BEVERAGE
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MEDICAL and THAI is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW are associated (or correlated) with THAI BEVERAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THAI BEVERAGE has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and THAI BEVERAGE
Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to generate 1.47 times more return on investment than THAI BEVERAGE. However, MEDICAL FACILITIES is 1.47 times more volatile than THAI BEVERAGE. It trades about 0.07 of its potential returns per unit of risk. THAI BEVERAGE is currently generating about 0.01 per unit of risk. If you would invest 568.00 in MEDICAL FACILITIES NEW on December 7, 2024 and sell it today you would earn a total of 542.00 from holding MEDICAL FACILITIES NEW or generate 95.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICAL FACILITIES NEW vs. THAI BEVERAGE
Performance |
| Timeline |
| MEDICAL FACILITIES NEW |
| THAI BEVERAGE |
MEDICAL FACILITIES and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICAL FACILITIES and THAI BEVERAGE
The main advantage of trading using opposite MEDICAL FACILITIES and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, THAI BEVERAGE 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 THAI BEVERAGE will offset losses from the drop in THAI BEVERAGE's long position.| MEDICAL FACILITIES vs. Transportadora de Gas | MEDICAL FACILITIES vs. Q2M Managementberatung AG | MEDICAL FACILITIES vs. Ares Management Corp | MEDICAL FACILITIES vs. Gaztransport Technigaz SA |
| THAI BEVERAGE vs. COVIVIO HOTELS INH | THAI BEVERAGE vs. Summit Hotel Properties | THAI BEVERAGE vs. MELIA HOTELS | THAI BEVERAGE vs. NH HOTEL GROUP |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |