Correlation Between Bangkok Dusit and Healthlead Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Healthlead Public 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 Dusit and Healthlead Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Dusit Medical and Healthlead Public, you can compare the effects of market volatilities on Bangkok Dusit and Healthlead Public 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 Dusit with a short position of Healthlead Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Healthlead Public.
Diversification Opportunities for Bangkok Dusit and Healthlead Public
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangkok and Healthlead is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Healthlead Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthlead Public and Bangkok Dusit 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 Dusit Medical are associated (or correlated) with Healthlead Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthlead Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Healthlead Public go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Healthlead Public
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to generate 60.25 times more return on investment than Healthlead Public. However, Bangkok Dusit is 60.25 times more volatile than Healthlead Public. It trades about 0.11 of its potential returns per unit of risk. Healthlead Public is currently generating about -0.08 per unit of risk. If you would invest 2,800 in Bangkok Dusit Medical on August 26, 2024 and sell it today you would lose (150.00) from holding Bangkok Dusit Medical or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Healthlead Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Healthlead Public |
Bangkok Dusit and Healthlead Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Healthlead Public
The main advantage of trading using opposite Bangkok Dusit and Healthlead Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Healthlead Public 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 Healthlead Public will offset losses from the drop in Healthlead Public's long position.| Bangkok Dusit vs. Healthlead Public | Bangkok Dusit vs. Halcyon Technology Public | Bangkok Dusit vs. Krung Thai Bank | Bangkok Dusit vs. Bangkok Bank Public |
| Healthlead Public vs. II Group Public | Healthlead Public vs. Dohome Public | Healthlead Public vs. Humanica Public | Healthlead Public vs. Jay Mart 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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