Correlation Between Bangkok Chain and Comanche International
Can any of the company-specific risk be diversified away by investing in both Bangkok Chain and Comanche International 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 Bangkok Chain and Comanche International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Chain Hospital and Comanche International Public, you can compare the effects of market volatilities on Bangkok Chain and Comanche International 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 Bangkok Chain with a short position of Comanche International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Chain and Comanche International.
Diversification Opportunities for Bangkok Chain and Comanche International
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bangkok and Comanche is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Chain Hospital and Comanche International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comanche International and Bangkok Chain 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 Bangkok Chain Hospital are associated (or correlated) with Comanche International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comanche International has no effect on the direction of Bangkok Chain i.e., Bangkok Chain and Comanche International go up and down completely randomly.
Pair Corralation between Bangkok Chain and Comanche International
Assuming the 90 days trading horizon Bangkok Chain Hospital is expected to generate 0.23 times more return on investment than Comanche International. However, Bangkok Chain Hospital is 4.29 times less risky than Comanche International. It trades about -0.06 of its potential returns per unit of risk. Comanche International Public is currently generating about -0.13 per unit of risk. If you would invest 1,945 in Bangkok Chain Hospital on September 1, 2024 and sell it today you would lose (285.00) from holding Bangkok Chain Hospital or give up 14.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Bangkok Chain Hospital vs. Comanche International Public
Performance |
| Timeline |
| Bangkok Chain Hospital |
| Comanche International |
Bangkok Chain and Comanche International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Chain and Comanche International
The main advantage of trading using opposite Bangkok Chain and Comanche International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Chain position performs unexpectedly, Comanche International 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 Comanche International will offset losses from the drop in Comanche International's long position.| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Chularat Hospital Public | Bangkok Chain vs. Bumrungrad Hospital Public | Bangkok Chain vs. Advanced Info Service |
| Comanche International vs. Com7 PCL | Comanche International vs. Central Retail | Comanche International vs. Dohome Public | Comanche International vs. Bangkok Chain Hospital |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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