Correlation Between Bangkok Dusit and Praram 9
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Praram 9 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 Praram 9 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 Praram 9 Hospital, you can compare the effects of market volatilities on Bangkok Dusit and Praram 9 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 Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Praram 9.
Diversification Opportunities for Bangkok Dusit and Praram 9
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bangkok and Praram is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital 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 Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Praram 9 go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Praram 9
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the Praram 9. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 1.36 times less risky than Praram 9. The stock trades about -0.08 of its potential returns per unit of risk. The Praram 9 Hospital is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,879 in Praram 9 Hospital on September 2, 2024 and sell it today you would earn a total of 696.00 from holding Praram 9 Hospital or generate 37.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Praram 9 Hospital
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Praram 9 Hospital |
Bangkok Dusit and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Praram 9
The main advantage of trading using opposite Bangkok Dusit and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9's long position.| Bangkok Dusit vs. AP Public | Bangkok Dusit vs. Advanced Information Technology | Bangkok Dusit vs. AJ Plast Public | Bangkok Dusit vs. Berli Jucker Public |
| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital Public | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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