Correlation Between Aikchol Hospital and Thantawan Industry
Can any of the company-specific risk be diversified away by investing in both Aikchol Hospital and Thantawan Industry 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 Thantawan Industry 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 Thantawan Industry Public, you can compare the effects of market volatilities on Aikchol Hospital and Thantawan Industry 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 Thantawan Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aikchol Hospital and Thantawan Industry.
Diversification Opportunities for Aikchol Hospital and Thantawan Industry
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aikchol and Thantawan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aikchol Hospital Public and Thantawan Industry Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thantawan Industry 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 Thantawan Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thantawan Industry Public has no effect on the direction of Aikchol Hospital i.e., Aikchol Hospital and Thantawan Industry go up and down completely randomly.
Pair Corralation between Aikchol Hospital and Thantawan Industry
Assuming the 90 days trading horizon Aikchol Hospital Public is expected to generate 77.74 times more return on investment than Thantawan Industry. However, Aikchol Hospital is 77.74 times more volatile than Thantawan Industry Public. It trades about 0.08 of its potential returns per unit of risk. Thantawan Industry Public is currently generating about 0.03 per unit of risk. If you would invest 1,750 in Aikchol Hospital Public on September 3, 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 | 100.0% |
| Values | Daily Returns |
Aikchol Hospital Public vs. Thantawan Industry Public
Performance |
| Timeline |
| Aikchol Hospital Public |
| Thantawan Industry Public |
Aikchol Hospital and Thantawan Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aikchol Hospital and Thantawan Industry
The main advantage of trading using opposite Aikchol Hospital and Thantawan Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aikchol Hospital position performs unexpectedly, Thantawan Industry 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 Thantawan Industry will offset losses from the drop in Thantawan Industry'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 |
| Thantawan Industry vs. Thai Metal Drum | Thantawan Industry vs. Haad Thip Public | Thantawan Industry vs. Sahamitr Pressure Container | Thantawan Industry vs. Ratchthani Leasing 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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