Correlation Between Bumrungrad Hospital and Intermedical Care
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Intermedical Care 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 Intermedical Care 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 Intermedical Care and, you can compare the effects of market volatilities on Bumrungrad Hospital and Intermedical Care 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 Intermedical Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Intermedical Care.
Diversification Opportunities for Bumrungrad Hospital and Intermedical Care
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bumrungrad and Intermedical is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Intermedical Care and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermedical Care 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 Intermedical Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermedical Care has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Intermedical Care go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Intermedical Care
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to under-perform the Intermedical Care. In addition to that, Bumrungrad Hospital is 2.26 times more volatile than Intermedical Care and. It trades about -0.44 of its total potential returns per unit of risk. Intermedical Care and is currently generating about -0.25 per unit of volatility. If you would invest 525.00 in Intermedical Care and on September 1, 2024 and sell it today you would lose (33.00) from holding Intermedical Care and or give up 6.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Intermedical Care and
Performance |
| Timeline |
| Bumrungrad Hospital |
| Intermedical Care |
Bumrungrad Hospital and Intermedical Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Intermedical Care
The main advantage of trading using opposite Bumrungrad Hospital and Intermedical Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Intermedical Care 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 Intermedical Care will offset losses from the drop in Intermedical Care'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 |
| Intermedical Care vs. Bangkok Dusit Medical | Intermedical Care vs. Bumrungrad Hospital Public | Intermedical Care vs. Bangkok Chain Hospital | Intermedical Care vs. Rajthanee Hospital 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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