Correlation Between Asia Medical and THONBURI HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Asia Medical and THONBURI HEALTHCARE 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 Asia Medical and THONBURI HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Medical Agricultural and THONBURI HEALTHCARE GRO NVDR, you can compare the effects of market volatilities on Asia Medical and THONBURI HEALTHCARE 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 Asia Medical with a short position of THONBURI HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and THONBURI HEALTHCARE.
Diversification Opportunities for Asia Medical and THONBURI HEALTHCARE
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asia and THONBURI is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and THONBURI HEALTHCARE GRO NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THONBURI HEALTHCARE GRO and Asia Medical 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 Asia Medical Agricultural are associated (or correlated) with THONBURI HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THONBURI HEALTHCARE GRO has no effect on the direction of Asia Medical i.e., Asia Medical and THONBURI HEALTHCARE go up and down completely randomly.
Pair Corralation between Asia Medical and THONBURI HEALTHCARE
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to generate 0.4 times more return on investment than THONBURI HEALTHCARE. However, Asia Medical Agricultural is 2.52 times less risky than THONBURI HEALTHCARE. It trades about -0.02 of its potential returns per unit of risk. THONBURI HEALTHCARE GRO NVDR is currently generating about -0.24 per unit of risk. If you would invest 126.00 in Asia Medical Agricultural on October 25, 2024 and sell it today you would lose (1.00) from holding Asia Medical Agricultural or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Medical Agricultural vs. THONBURI HEALTHCARE GRO NVDR
Performance |
| Timeline |
| Asia Medical Agricultural |
| THONBURI HEALTHCARE GRO |
Asia Medical and THONBURI HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and THONBURI HEALTHCARE
The main advantage of trading using opposite Asia Medical and THONBURI HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, THONBURI HEALTHCARE 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 THONBURI HEALTHCARE will offset losses from the drop in THONBURI HEALTHCARE's long position.| Asia Medical vs. Asian Alliance International | Asia Medical vs. International Network System | Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food Public |
| THONBURI HEALTHCARE vs. Bhiraj Office Leasehold | THONBURI HEALTHCARE vs. Asia Medical Agricultural | THONBURI HEALTHCARE vs. Quality Construction Products | THONBURI HEALTHCARE vs. City Sports and |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |