Correlation Between Bangkok Dusit and WHA Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and WHA 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 WHA 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 WHA Public, you can compare the effects of market volatilities on Bangkok Dusit and WHA 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 WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and WHA Public.
Diversification Opportunities for Bangkok Dusit and WHA Public
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and WHA is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA 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 WHA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and WHA Public go up and down completely randomly.
Pair Corralation between Bangkok Dusit and WHA Public
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to generate 0.59 times more return on investment than WHA Public. However, Bangkok Dusit Medical is 1.68 times less risky than WHA Public. It trades about -0.16 of its potential returns per unit of risk. WHA Public is currently generating about -0.31 per unit of risk. If you would invest 2,460 in Bangkok Dusit Medical on November 4, 2024 and sell it today you would lose (110.00) from holding Bangkok Dusit Medical or give up 4.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. WHA Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| WHA Public |
Bangkok Dusit and WHA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and WHA Public
The main advantage of trading using opposite Bangkok Dusit and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, WHA 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 WHA Public will offset losses from the drop in WHA Public's long position.| Bangkok Dusit vs. Bumrungrad Hospital PCL | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
| WHA Public vs. Bangkok Dusit Medical | WHA Public vs. Land and Houses | WHA Public vs. BTS Group Holdings | WHA Public vs. Bangkok Expressway and |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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