Correlation Between Bangkok Dusit and Raffles Medical
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Raffles 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 Raffles 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 Raffles Medical Group, you can compare the effects of market volatilities on Bangkok Dusit and Raffles 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 Raffles Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Raffles Medical.
Diversification Opportunities for Bangkok Dusit and Raffles Medical
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangkok and Raffles is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Raffles Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raffles Medical Group 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 Raffles Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raffles Medical Group has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Raffles Medical go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Raffles Medical
If you would invest 74.00 in Raffles Medical Group on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Raffles Medical Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Raffles Medical Group
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Raffles Medical Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bangkok Dusit and Raffles Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Raffles Medical
The main advantage of trading using opposite Bangkok Dusit and Raffles Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Raffles 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 Raffles Medical will offset losses from the drop in Raffles Medical's long position.| Bangkok Dusit vs. Copa Holdings SA | Bangkok Dusit vs. United Airlines Holdings | Bangkok Dusit vs. Delta Air Lines | Bangkok Dusit vs. SkyWest |
| Raffles Medical vs. Pennant Group | Raffles Medical vs. Surgery Partners | Raffles Medical vs. The Ensign Group | Raffles Medical vs. Encompass Health Corp |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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