Correlation Between Bumrungrad Hospital and Sikarin Public
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Sikarin Public 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 Sikarin Public 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 Sikarin Public, you can compare the effects of market volatilities on Bumrungrad Hospital and Sikarin Public 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 Sikarin Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Sikarin Public.
Diversification Opportunities for Bumrungrad Hospital and Sikarin Public
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bumrungrad and Sikarin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Sikarin Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sikarin 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 Sikarin Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sikarin Public has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Sikarin Public go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Sikarin Public
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to under-perform the Sikarin Public. In addition to that, Bumrungrad Hospital is 2.05 times more volatile than Sikarin Public. It trades about -0.32 of its total potential returns per unit of risk. Sikarin Public is currently generating about 0.13 per unit of volatility. If you would invest 920.00 in Sikarin Public on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Sikarin Public or generate 2.17% 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. Sikarin Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| Sikarin Public |
Bumrungrad Hospital and Sikarin Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Sikarin Public
The main advantage of trading using opposite Bumrungrad Hospital and Sikarin Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Sikarin Public 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 Sikarin Public will offset losses from the drop in Sikarin Public's long position.| Bumrungrad Hospital vs. Rajthanee Hospital Public | Bumrungrad Hospital vs. Chularat Hospital Public | Bumrungrad Hospital vs. Ekachai Medical Care | Bumrungrad Hospital vs. Bangkok Chain Hospital |
| Sikarin Public vs. Rajthanee Hospital Public | Sikarin Public vs. Chularat Hospital Public | Sikarin Public vs. Ekachai Medical Care | Sikarin Public 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |