Correlation Between Asphere Innovations and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Asphere Innovations and Bangkok Chain 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 Asphere Innovations and Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asphere Innovations Public and Bangkok Chain Hospital, you can compare the effects of market volatilities on Asphere Innovations and Bangkok Chain 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 Asphere Innovations with a short position of Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asphere Innovations and Bangkok Chain.
Diversification Opportunities for Asphere Innovations and Bangkok Chain
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asphere and Bangkok is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Asphere Innovations Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital and Asphere Innovations 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 Asphere Innovations Public are associated (or correlated) with Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Asphere Innovations i.e., Asphere Innovations and Bangkok Chain go up and down completely randomly.
Pair Corralation between Asphere Innovations and Bangkok Chain
Assuming the 90 days horizon Asphere Innovations Public is expected to under-perform the Bangkok Chain. In addition to that, Asphere Innovations is 2.21 times more volatile than Bangkok Chain Hospital. It trades about -0.21 of its total potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.13 per unit of volatility. If you would invest 1,530 in Bangkok Chain Hospital on November 2, 2024 and sell it today you would lose (100.00) from holding Bangkok Chain Hospital or give up 6.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asphere Innovations Public vs. Bangkok Chain Hospital
Performance |
| Timeline |
| Asphere Innovations |
| Bangkok Chain Hospital |
Asphere Innovations and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asphere Innovations and Bangkok Chain
The main advantage of trading using opposite Asphere Innovations and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asphere Innovations position performs unexpectedly, Bangkok Chain 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 Bangkok Chain will offset losses from the drop in Bangkok Chain's long position.| Asphere Innovations vs. Bangkok Chain Hospital | Asphere Innovations vs. Jay Mart Public | Asphere Innovations vs. Energy Absolute Public | Asphere Innovations vs. Delta Electronics Public |
| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Chularat Hospital Public | Bangkok Chain vs. Bumrungrad Hospital PCL | Bangkok Chain vs. Advanced Info Service |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |