Correlation Between Bumrungrad Hospital and Healthlead Public
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Healthlead 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 Healthlead 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 Healthlead Public, you can compare the effects of market volatilities on Bumrungrad Hospital and Healthlead 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 Healthlead Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Healthlead Public.
Diversification Opportunities for Bumrungrad Hospital and Healthlead Public
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bumrungrad and Healthlead is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Healthlead Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthlead 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 Healthlead Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthlead Public has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Healthlead Public go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Healthlead Public
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to generate 0.75 times more return on investment than Healthlead Public. However, Bumrungrad Hospital Public is 1.34 times less risky than Healthlead Public. It trades about -0.01 of its potential returns per unit of risk. Healthlead Public is currently generating about -0.06 per unit of risk. If you would invest 22,673 in Bumrungrad Hospital Public on August 31, 2024 and sell it today you would lose (1,873) from holding Bumrungrad Hospital Public or give up 8.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Healthlead Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| Healthlead Public |
Bumrungrad Hospital and Healthlead Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Healthlead Public
The main advantage of trading using opposite Bumrungrad Hospital and Healthlead Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Healthlead 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 Healthlead Public will offset losses from the drop in Healthlead 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 |
| Healthlead Public vs. Dohome Public | Healthlead Public vs. Humanica Public | Healthlead Public vs. Jay Mart Public | Healthlead Public vs. Siam Global House |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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