Correlation Between Bumrungrad Hospital and PINTHONG INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumrungrad Hospital PCL and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on Bumrungrad Hospital and PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and PINTHONG INDUSTRIAL.
Diversification Opportunities for Bumrungrad Hospital and PINTHONG INDUSTRIAL
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bumrungrad and PINTHONG is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital PCL and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK 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 PCL are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and PINTHONG INDUSTRIAL go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and PINTHONG INDUSTRIAL
Assuming the 90 days horizon Bumrungrad Hospital PCL is expected to under-perform the PINTHONG INDUSTRIAL. But the stock apears to be less risky and, when comparing its historical volatility, Bumrungrad Hospital PCL is 1.94 times less risky than PINTHONG INDUSTRIAL. The stock trades about -0.03 of its potential returns per unit of risk. The PINTHONG INDUSTRIAL PARK is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 415.00 in PINTHONG INDUSTRIAL PARK on January 23, 2025 and sell it today you would earn a total of 235.00 from holding PINTHONG INDUSTRIAL PARK or generate 56.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital PCL vs. PINTHONG INDUSTRIAL PARK
Performance |
| Timeline |
| Bumrungrad Hospital PCL |
| PINTHONG INDUSTRIAL PARK |
Bumrungrad Hospital and PINTHONG INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and PINTHONG INDUSTRIAL
The main advantage of trading using opposite Bumrungrad Hospital and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL'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 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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