Correlation Between Bangkok Dusit and Select Medical
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Select 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 Select 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 Select Medical Holdings, you can compare the effects of market volatilities on Bangkok Dusit and Select 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 Select Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Select Medical.
Diversification Opportunities for Bangkok Dusit and Select Medical
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and Select is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Select Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Medical Holdings 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 Select Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Medical Holdings has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Select Medical go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Select Medical
Assuming the 90 days horizon Bangkok Dusit Medical is expected to under-perform the Select Medical. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 2.25 times less risky than Select Medical. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Select Medical Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,153 in Select Medical Holdings on September 4, 2024 and sell it today you would earn a total of 950.00 from holding Select Medical Holdings or generate 82.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.16% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Select Medical Holdings
Performance |
| Timeline |
| Bangkok Dusit Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Select Medical Holdings |
Bangkok Dusit and Select Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Select Medical
The main advantage of trading using opposite Bangkok Dusit and Select Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Select 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 Select Medical will offset losses from the drop in Select Medical's long position.| Bangkok Dusit vs. Fresenius SE Co | Bangkok Dusit vs. Life Healthcare Group | Bangkok Dusit vs. Select Medical Holdings | Bangkok Dusit vs. Ramsay Health Care |
| Select Medical vs. The Ensign Group | Select Medical vs. Encompass Health Corp | Select Medical vs. InnovAge Holding Corp | Select Medical vs. Enhabit |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |