Correlation Between Superior Plus and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Bumrungrad Hospital Public, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Bumrungrad Hospital.
Diversification Opportunities for Superior Plus and Bumrungrad Hospital
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Superior and Bumrungrad is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus 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 Superior Plus 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 Superior Plus 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 Superior Plus i.e., Superior Plus and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between Superior Plus and Bumrungrad Hospital
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Bumrungrad Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 3.26 times less risky than Bumrungrad Hospital. The stock trades about -0.02 of its potential returns per unit of risk. The Bumrungrad Hospital Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 83.00 in Bumrungrad Hospital Public on August 28, 2024 and sell it today you would earn a total of 477.00 from holding Bumrungrad Hospital Public or generate 574.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| Superior Plus Corp |
| Bumrungrad Hospital |
Superior Plus and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Bumrungrad Hospital
The main advantage of trading using opposite Superior Plus and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. CDL INVESTMENT | Superior Plus vs. ECHO INVESTMENT ZY | Superior Plus vs. SEI INVESTMENTS | Superior Plus vs. Gruppo Mutuionline SpA |
| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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