Correlation Between Bangkok Dusit and Techno Medical
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Techno Medical 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 Techno Medical 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 Techno Medical Public, you can compare the effects of market volatilities on Bangkok Dusit and Techno Medical 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 Techno Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Techno Medical.
Diversification Opportunities for Bangkok Dusit and Techno Medical
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and Techno is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Techno Medical Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Medical 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 Techno Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Medical Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Techno Medical go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Techno Medical
Assuming the 90 days trading horizon Bangkok Dusit is expected to generate 1434.67 times less return on investment than Techno Medical. But when comparing it to its historical volatility, Bangkok Dusit Medical is 34.76 times less risky than Techno Medical. It trades about 0.0 of its potential returns per unit of risk. Techno Medical Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Techno Medical Public on September 5, 2024 and sell it today you would lose (140.00) from holding Techno Medical Public or give up 54.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Techno Medical Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Techno Medical Public |
Bangkok Dusit and Techno Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Techno Medical
The main advantage of trading using opposite Bangkok Dusit and Techno Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Techno Medical 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 Techno Medical will offset losses from the drop in Techno Medical's long position.| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
| Techno Medical vs. Asia Aviation Public | Techno Medical vs. Bangkok Dusit Medical | Techno Medical vs. Bangkok Expressway and | Techno Medical vs. Airports of Thailand |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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