Correlation Between Bumrungrad Hospital and AP Public
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and AP 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 Bumrungrad Hospital and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumrungrad Hospital Public and AP Public, you can compare the effects of market volatilities on Bumrungrad Hospital and AP 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 Bumrungrad Hospital with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and AP Public.
Diversification Opportunities for Bumrungrad Hospital and AP Public
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bumrungrad and AP Public is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Bumrungrad Hospital 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 Bumrungrad Hospital Public are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and AP Public go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and AP Public
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to under-perform the AP Public. In addition to that, Bumrungrad Hospital is 1.08 times more volatile than AP Public. It trades about -0.3 of its total potential returns per unit of risk. AP Public is currently generating about -0.16 per unit of volatility. If you would invest 1,000.00 in AP Public on August 31, 2024 and sell it today you would lose (130.00) from holding AP Public or give up 13.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. AP Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| AP Public |
Bumrungrad Hospital and AP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and AP Public
The main advantage of trading using opposite Bumrungrad Hospital and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, AP 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 AP Public will offset losses from the drop in AP Public's long position.| Bumrungrad Hospital vs. AP Public | Bumrungrad Hospital vs. Advanced Information Technology | Bumrungrad Hospital vs. AJ Plast Public | Bumrungrad Hospital vs. Berli Jucker Public |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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