Correlation Between Bumrungrad Hospital and Interlink Communication
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Interlink Communication 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 Interlink Communication 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 Interlink Communication Public, you can compare the effects of market volatilities on Bumrungrad Hospital and Interlink Communication 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 Interlink Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Interlink Communication.
Diversification Opportunities for Bumrungrad Hospital and Interlink Communication
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bumrungrad and Interlink is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Interlink Communication Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Communication 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 Interlink Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Communication has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Interlink Communication go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Interlink Communication
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to generate 0.89 times more return on investment than Interlink Communication. However, Bumrungrad Hospital Public is 1.12 times less risky than Interlink Communication. It trades about 0.01 of its potential returns per unit of risk. Interlink Communication Public is currently generating about -0.02 per unit of risk. If you would invest 20,933 in Bumrungrad Hospital Public on September 3, 2024 and sell it today you would lose (33.00) from holding Bumrungrad Hospital Public or give up 0.16% 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. Interlink Communication Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| Interlink Communication |
Bumrungrad Hospital and Interlink Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Interlink Communication
The main advantage of trading using opposite Bumrungrad Hospital and Interlink Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Interlink Communication 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 Interlink Communication will offset losses from the drop in Interlink Communication's long position.| Bumrungrad Hospital vs. Bangkok Dusit Medical | Bumrungrad Hospital vs. CP ALL Public | Bumrungrad Hospital vs. Central Pattana Public | Bumrungrad Hospital vs. Airports of Thailand |
| Interlink Communication vs. KCE Electronics Public | Interlink Communication vs. Land and Houses | Interlink Communication vs. The Siam Cement | Interlink Communication vs. Bangkok Bank Public |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |