Correlation Between Aikchol Hospital and Crown Seal
Can any of the company-specific risk be diversified away by investing in both Aikchol Hospital and Crown Seal 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 Aikchol Hospital and Crown Seal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aikchol Hospital Public and Crown Seal Public, you can compare the effects of market volatilities on Aikchol Hospital and Crown Seal 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 Aikchol Hospital with a short position of Crown Seal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aikchol Hospital and Crown Seal.
Diversification Opportunities for Aikchol Hospital and Crown Seal
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Aikchol and Crown is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Aikchol Hospital Public and Crown Seal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Seal Public and Aikchol Hospital 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 Aikchol Hospital Public are associated (or correlated) with Crown Seal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Seal Public has no effect on the direction of Aikchol Hospital i.e., Aikchol Hospital and Crown Seal go up and down completely randomly.
Pair Corralation between Aikchol Hospital and Crown Seal
Assuming the 90 days trading horizon Aikchol Hospital is expected to generate 1.03 times less return on investment than Crown Seal. But when comparing it to its historical volatility, Aikchol Hospital Public is 1.0 times less risky than Crown Seal. It trades about 0.07 of its potential returns per unit of risk. Crown Seal Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,270 in Crown Seal Public on September 1, 2024 and sell it today you would earn a total of 330.00 from holding Crown Seal Public or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.45% |
| Values | Daily Returns |
Aikchol Hospital Public vs. Crown Seal Public
Performance |
| Timeline |
| Aikchol Hospital Public |
| Crown Seal Public |
Aikchol Hospital and Crown Seal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aikchol Hospital and Crown Seal
The main advantage of trading using opposite Aikchol Hospital and Crown Seal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aikchol Hospital position performs unexpectedly, Crown Seal 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 Crown Seal will offset losses from the drop in Crown Seal's long position.| Aikchol Hospital vs. AP Public | Aikchol Hospital vs. Bumrungrad Hospital Public | Aikchol Hospital vs. Advanced Information Technology | Aikchol Hospital vs. AJ Plast Public |
| Crown Seal vs. AAPICO Hitech Public | Crown Seal vs. AP Public | Crown Seal vs. Aikchol Hospital Public | Crown Seal vs. Bank of Ayudhya |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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