Correlation Between Airports and Vibhavadi Medical
Can any of the company-specific risk be diversified away by investing in both Airports and Vibhavadi Medical 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 Airports and Vibhavadi Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airports of Thailand and Vibhavadi Medical Center, you can compare the effects of market volatilities on Airports and Vibhavadi Medical 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 Airports with a short position of Vibhavadi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Vibhavadi Medical.
Diversification Opportunities for Airports and Vibhavadi Medical
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Airports and Vibhavadi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Vibhavadi Medical Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vibhavadi Medical Center and Airports 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 Airports of Thailand are associated (or correlated) with Vibhavadi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vibhavadi Medical Center has no effect on the direction of Airports i.e., Airports and Vibhavadi Medical go up and down completely randomly.
Pair Corralation between Airports and Vibhavadi Medical
Assuming the 90 days trading horizon Airports of Thailand is expected to under-perform the Vibhavadi Medical. But the stock apears to be less risky and, when comparing its historical volatility, Airports of Thailand is 1.36 times less risky than Vibhavadi Medical. The stock trades about -0.01 of its potential returns per unit of risk. The Vibhavadi Medical Center is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Vibhavadi Medical Center on September 5, 2024 and sell it today you would earn a total of 22.00 from holding Vibhavadi Medical Center or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. Vibhavadi Medical Center
Performance |
| Timeline |
| Airports of Thailand |
| Vibhavadi Medical Center |
Airports and Vibhavadi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Vibhavadi Medical
The main advantage of trading using opposite Airports and Vibhavadi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Vibhavadi Medical 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 Vibhavadi Medical will offset losses from the drop in Vibhavadi Medical's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Kasikornbank Public | Airports vs. Bangkok Dusit Medical |
| Vibhavadi Medical vs. Chularat Hospital Public | Vibhavadi Medical vs. Bangkok Chain Hospital | Vibhavadi Medical vs. Bangkok Dusit Medical | Vibhavadi Medical vs. WHA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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