Correlation Between Bumrungrad Hospital and Ratchaphruek Hospital
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Ratchaphruek 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 Ratchaphruek 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 Ratchaphruek Hospital Public, you can compare the effects of market volatilities on Bumrungrad Hospital and Ratchaphruek 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 Ratchaphruek Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Ratchaphruek Hospital.
Diversification Opportunities for Bumrungrad Hospital and Ratchaphruek Hospital
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bumrungrad and Ratchaphruek is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Ratchaphruek Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchaphruek Hospital 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 Ratchaphruek Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchaphruek Hospital has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Ratchaphruek Hospital go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Ratchaphruek Hospital
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to under-perform the Ratchaphruek Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Bumrungrad Hospital Public is 62.47 times less risky than Ratchaphruek Hospital. The stock trades about -0.11 of its potential returns per unit of risk. The Ratchaphruek Hospital Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 570.00 in Ratchaphruek Hospital Public on September 2, 2024 and sell it today you would lose (25.00) from holding Ratchaphruek Hospital Public or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Ratchaphruek Hospital Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| Ratchaphruek Hospital |
Bumrungrad Hospital and Ratchaphruek Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Ratchaphruek Hospital
The main advantage of trading using opposite Bumrungrad Hospital and Ratchaphruek Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Ratchaphruek 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 Ratchaphruek Hospital will offset losses from the drop in Ratchaphruek 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 |
| Ratchaphruek Hospital vs. Rajthanee Hospital Public | Ratchaphruek Hospital vs. Chularat Hospital Public | Ratchaphruek Hospital vs. Ekachai Medical Care | Ratchaphruek Hospital vs. Bangkok Chain Hospital |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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