Correlation Between Banpu Public and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both Banpu Public and Chularat 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 Banpu Public and Chularat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banpu Public and Chularat Hospital Public, you can compare the effects of market volatilities on Banpu Public and Chularat 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 Banpu Public with a short position of Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banpu Public and Chularat Hospital.
Diversification Opportunities for Banpu Public and Chularat Hospital
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banpu and Chularat is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Banpu Public and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital Public and Banpu Public 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 Banpu Public are associated (or correlated) with Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of Banpu Public i.e., Banpu Public and Chularat Hospital go up and down completely randomly.
Pair Corralation between Banpu Public and Chularat Hospital
Assuming the 90 days trading horizon Banpu Public is expected to under-perform the Chularat Hospital. In addition to that, Banpu Public is 1.23 times more volatile than Chularat Hospital Public. It trades about -0.06 of its total potential returns per unit of risk. Chularat Hospital Public is currently generating about -0.05 per unit of volatility. If you would invest 353.00 in Chularat Hospital Public on November 27, 2024 and sell it today you would lose (129.00) from holding Chularat Hospital Public or give up 36.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banpu Public vs. Chularat Hospital Public
Performance |
| Timeline |
| Banpu Public |
| Chularat Hospital Public |
Banpu Public and Chularat Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banpu Public and Chularat Hospital
The main advantage of trading using opposite Banpu Public and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banpu Public position performs unexpectedly, Chularat 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 Chularat Hospital will offset losses from the drop in Chularat Hospital's long position.| Banpu Public vs. PTT Public | Banpu Public vs. PTT Exploration and | Banpu Public vs. Bangkok Bank Public | Banpu Public vs. Thai Oil Public |
| Chularat Hospital vs. Bangkok Chain Hospital | Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bumrungrad Hospital PCL | Chularat Hospital vs. AP 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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