Correlation Between AJ Plast and Mahachai Hospital
Can any of the company-specific risk be diversified away by investing in both AJ Plast and Mahachai 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 AJ Plast and Mahachai Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AJ Plast Public and Mahachai Hospital Public, you can compare the effects of market volatilities on AJ Plast and Mahachai 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 AJ Plast with a short position of Mahachai Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AJ Plast and Mahachai Hospital.
Diversification Opportunities for AJ Plast and Mahachai Hospital
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AJ Plast and Mahachai is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding AJ Plast Public and Mahachai Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahachai Hospital Public and AJ Plast 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 AJ Plast Public are associated (or correlated) with Mahachai Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahachai Hospital Public has no effect on the direction of AJ Plast i.e., AJ Plast and Mahachai Hospital go up and down completely randomly.
Pair Corralation between AJ Plast and Mahachai Hospital
Assuming the 90 days horizon AJ Plast Public is expected to generate 0.68 times more return on investment than Mahachai Hospital. However, AJ Plast Public is 1.48 times less risky than Mahachai Hospital. It trades about -0.25 of its potential returns per unit of risk. Mahachai Hospital Public is currently generating about -0.21 per unit of risk. If you would invest 510.00 in AJ Plast Public on September 2, 2024 and sell it today you would lose (30.00) from holding AJ Plast Public or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AJ Plast Public vs. Mahachai Hospital Public
Performance |
| Timeline |
| AJ Plast Public |
| Mahachai Hospital Public |
AJ Plast and Mahachai Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AJ Plast and Mahachai Hospital
The main advantage of trading using opposite AJ Plast and Mahachai Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AJ Plast position performs unexpectedly, Mahachai 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 Mahachai Hospital will offset losses from the drop in Mahachai Hospital's long position.| AJ Plast vs. AAPICO Hitech Public | AJ Plast vs. AP Public | AJ Plast vs. Aikchol Hospital Public | AJ Plast vs. Bank of Ayudhya |
| Mahachai Hospital vs. Ladprao General Hospital | Mahachai Hospital vs. Nonthavej Hospital Public | Mahachai Hospital vs. Wattana Karnpaet Public | Mahachai Hospital vs. Thonburi Medical Centre |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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