Correlation Between Aikchol Hospital and Southern Concrete
Can any of the company-specific risk be diversified away by investing in both Aikchol Hospital and Southern Concrete 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 Southern Concrete 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 Southern Concrete Pile, you can compare the effects of market volatilities on Aikchol Hospital and Southern Concrete 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 Southern Concrete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aikchol Hospital and Southern Concrete.
Diversification Opportunities for Aikchol Hospital and Southern Concrete
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aikchol and Southern is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Aikchol Hospital Public and Southern Concrete Pile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Concrete Pile 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 Southern Concrete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Concrete Pile has no effect on the direction of Aikchol Hospital i.e., Aikchol Hospital and Southern Concrete go up and down completely randomly.
Pair Corralation between Aikchol Hospital and Southern Concrete
Assuming the 90 days trading horizon Aikchol Hospital Public is expected to under-perform the Southern Concrete. But the stock apears to be less risky and, when comparing its historical volatility, Aikchol Hospital Public is 2.85 times less risky than Southern Concrete. The stock trades about -0.17 of its potential returns per unit of risk. The Southern Concrete Pile is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 640.00 in Southern Concrete Pile on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Southern Concrete Pile or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aikchol Hospital Public vs. Southern Concrete Pile
Performance |
| Timeline |
| Aikchol Hospital Public |
| Southern Concrete Pile |
Aikchol Hospital and Southern Concrete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aikchol Hospital and Southern Concrete
The main advantage of trading using opposite Aikchol Hospital and Southern Concrete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aikchol Hospital position performs unexpectedly, Southern Concrete 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 Southern Concrete will offset losses from the drop in Southern Concrete'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 |
| Southern Concrete vs. PTT Public | Southern Concrete vs. PTT Exploration and | Southern Concrete vs. The Siam Cement | Southern Concrete vs. CP ALL Public |
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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