Correlation Between Bumrungrad Hospital and Nonthavej Hospital
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Nonthavej 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 Nonthavej 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 Nonthavej Hospital Public, you can compare the effects of market volatilities on Bumrungrad Hospital and Nonthavej 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 Nonthavej Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Nonthavej Hospital.
Diversification Opportunities for Bumrungrad Hospital and Nonthavej Hospital
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bumrungrad and Nonthavej is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Nonthavej Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nonthavej 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 Nonthavej Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nonthavej Hospital Public has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Nonthavej Hospital go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Nonthavej Hospital
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to under-perform the Nonthavej Hospital. In addition to that, Bumrungrad Hospital is 3.06 times more volatile than Nonthavej Hospital Public. It trades about -0.5 of its total potential returns per unit of risk. Nonthavej Hospital Public is currently generating about 0.0 per unit of volatility. If you would invest 3,125 in Nonthavej Hospital Public on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Nonthavej Hospital Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Nonthavej Hospital Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| Nonthavej Hospital Public |
Bumrungrad Hospital and Nonthavej Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Nonthavej Hospital
The main advantage of trading using opposite Bumrungrad Hospital and Nonthavej Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Nonthavej 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 Nonthavej Hospital will offset losses from the drop in Nonthavej Hospital'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 |
| Nonthavej Hospital vs. Bumrungrad Hospital Public | Nonthavej Hospital vs. Aikchol Hospital Public | Nonthavej Hospital vs. Ramkhamhaeng Hospital Public | Nonthavej Hospital vs. Wattana Karnpaet 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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