Correlation Between Bumrungrad Hospital and Copperwired Public
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Copperwired 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 Copperwired 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 Copperwired Public, you can compare the effects of market volatilities on Bumrungrad Hospital and Copperwired 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 Copperwired Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Copperwired Public.
Diversification Opportunities for Bumrungrad Hospital and Copperwired Public
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bumrungrad and Copperwired is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Copperwired Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperwired 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 Copperwired Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperwired Public has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Copperwired Public go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Copperwired Public
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to generate 0.67 times more return on investment than Copperwired Public. However, Bumrungrad Hospital Public is 1.49 times less risky than Copperwired Public. It trades about 0.01 of its potential returns per unit of risk. Copperwired Public is currently generating about -0.03 per unit of risk. If you would invest 20,404 in Bumrungrad Hospital Public on August 29, 2024 and sell it today you would lose (4.00) from holding Bumrungrad Hospital Public or give up 0.02% 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. Copperwired Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| Copperwired Public |
Bumrungrad Hospital and Copperwired Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Copperwired Public
The main advantage of trading using opposite Bumrungrad Hospital and Copperwired Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Copperwired 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 Copperwired Public will offset losses from the drop in Copperwired Public's long position.| Bumrungrad Hospital vs. Chularat Hospital Public | Bumrungrad Hospital vs. Bangkok Chain Hospital | Bumrungrad Hospital vs. Bangkok Dusit Medical | Bumrungrad Hospital vs. Rajthanee Hospital Public |
| Copperwired Public vs. Com7 PCL | Copperwired Public vs. Central Retail | Copperwired Public vs. Dohome Public | Copperwired Public vs. Bangkok Chain Hospital |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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