Correlation Between Aikchol Hospital and GMM Grammy
Can any of the company-specific risk be diversified away by investing in both Aikchol Hospital and GMM Grammy 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 GMM Grammy 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 GMM Grammy Public, you can compare the effects of market volatilities on Aikchol Hospital and GMM Grammy 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 GMM Grammy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aikchol Hospital and GMM Grammy.
Diversification Opportunities for Aikchol Hospital and GMM Grammy
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aikchol and GMM is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aikchol Hospital Public and GMM Grammy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMM Grammy 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 GMM Grammy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMM Grammy Public has no effect on the direction of Aikchol Hospital i.e., Aikchol Hospital and GMM Grammy go up and down completely randomly.
Pair Corralation between Aikchol Hospital and GMM Grammy
Assuming the 90 days trading horizon Aikchol Hospital Public is expected to generate 36.89 times more return on investment than GMM Grammy. However, Aikchol Hospital is 36.89 times more volatile than GMM Grammy Public. It trades about 0.08 of its potential returns per unit of risk. GMM Grammy Public is currently generating about 0.04 per unit of risk. If you would invest 1,750 in Aikchol Hospital Public on September 1, 2024 and sell it today you would lose (200.00) from holding Aikchol Hospital Public or give up 11.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Aikchol Hospital Public vs. GMM Grammy Public
Performance |
| Timeline |
| Aikchol Hospital Public |
| GMM Grammy Public |
Aikchol Hospital and GMM Grammy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aikchol Hospital and GMM Grammy
The main advantage of trading using opposite Aikchol Hospital and GMM Grammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aikchol Hospital position performs unexpectedly, GMM Grammy 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 GMM Grammy will offset losses from the drop in GMM Grammy'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 |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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