Correlation Between Bumrungrad Hospital and Mahachai Hospital
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Mahachai Hospital 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 Mahachai Hospital 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 Mahachai Hospital Public, you can compare the effects of market volatilities on Bumrungrad Hospital and Mahachai Hospital 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 Mahachai Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Mahachai Hospital.
Diversification Opportunities for Bumrungrad Hospital and Mahachai Hospital
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bumrungrad and Mahachai is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Mahachai Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahachai Hospital 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 Mahachai Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahachai Hospital Public has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Mahachai Hospital go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Mahachai Hospital
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to under-perform the Mahachai Hospital. In addition to that, Bumrungrad Hospital is 1.7 times more volatile than Mahachai Hospital Public. It trades about -0.42 of its total potential returns per unit of risk. Mahachai Hospital Public is currently generating about -0.21 per unit of volatility. If you would invest 3,100 in Mahachai Hospital Public on September 2, 2024 and sell it today you would lose (225.00) from holding Mahachai Hospital Public or give up 7.26% 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. Mahachai Hospital Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| Mahachai Hospital Public |
Bumrungrad Hospital and Mahachai Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Mahachai Hospital
The main advantage of trading using opposite Bumrungrad Hospital and Mahachai Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Mahachai Hospital 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 Mahachai Hospital will offset losses from the drop in Mahachai Hospital'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 |
| Mahachai Hospital vs. Ladprao General Hospital | Mahachai Hospital vs. Nonthavej Hospital Public | Mahachai Hospital vs. Wattana Karnpaet Public | Mahachai Hospital vs. Thonburi Medical Centre |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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