Correlation Between Bangkok Chain and Wattana Karnpaet
Can any of the company-specific risk be diversified away by investing in both Bangkok Chain and Wattana Karnpaet 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 Wattana Karnpaet 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 Wattana Karnpaet Public, you can compare the effects of market volatilities on Bangkok Chain and Wattana Karnpaet 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 Wattana Karnpaet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Chain and Wattana Karnpaet.
Diversification Opportunities for Bangkok Chain and Wattana Karnpaet
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bangkok and Wattana is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Chain Hospital and Wattana Karnpaet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wattana Karnpaet Public 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 Wattana Karnpaet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wattana Karnpaet Public has no effect on the direction of Bangkok Chain i.e., Bangkok Chain and Wattana Karnpaet go up and down completely randomly.
Pair Corralation between Bangkok Chain and Wattana Karnpaet
Assuming the 90 days trading horizon Bangkok Chain Hospital is expected to generate 0.29 times more return on investment than Wattana Karnpaet. However, Bangkok Chain Hospital is 3.45 times less risky than Wattana Karnpaet. It trades about -0.34 of its potential returns per unit of risk. Wattana Karnpaet Public is currently generating about -0.16 per unit of risk. If you would invest 1,840 in Bangkok Chain Hospital on August 29, 2024 and sell it today you would lose (220.00) from holding Bangkok Chain Hospital or give up 11.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Chain Hospital vs. Wattana Karnpaet Public
Performance |
| Timeline |
| Bangkok Chain Hospital |
| Wattana Karnpaet Public |
Bangkok Chain and Wattana Karnpaet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Chain and Wattana Karnpaet
The main advantage of trading using opposite Bangkok Chain and Wattana Karnpaet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Chain position performs unexpectedly, Wattana Karnpaet 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 Wattana Karnpaet will offset losses from the drop in Wattana Karnpaet'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 |
| Wattana Karnpaet vs. Nonthavej Hospital Public | Wattana Karnpaet vs. Thonburi Medical Centre | Wattana Karnpaet vs. Mahachai Hospital Public | Wattana Karnpaet vs. Aikchol Hospital 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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