Correlation Between Big Camera and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both Big Camera and Chularat 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 Big Camera and Chularat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Camera and Chularat Hospital Public, you can compare the effects of market volatilities on Big Camera and Chularat 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 Big Camera with a short position of Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Camera and Chularat Hospital.
Diversification Opportunities for Big Camera and Chularat Hospital
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Big and Chularat is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Big Camera and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital Public and Big Camera 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 Big Camera are associated (or correlated) with Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of Big Camera i.e., Big Camera and Chularat Hospital go up and down completely randomly.
Pair Corralation between Big Camera and Chularat Hospital
Assuming the 90 days trading horizon Big Camera is expected to generate 66.15 times more return on investment than Chularat Hospital. However, Big Camera is 66.15 times more volatile than Chularat Hospital Public. It trades about 0.11 of its potential returns per unit of risk. Chularat Hospital Public is currently generating about 0.03 per unit of risk. If you would invest 43.00 in Big Camera on August 29, 2024 and sell it today you would lose (4.00) from holding Big Camera or give up 9.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Big Camera vs. Chularat Hospital Public
Performance |
| Timeline |
| Big Camera |
| Chularat Hospital Public |
Big Camera and Chularat Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Camera and Chularat Hospital
The main advantage of trading using opposite Big Camera and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Camera position performs unexpectedly, Chularat 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 Chularat Hospital will offset losses from the drop in Chularat Hospital's long position.| Big Camera vs. Ananda Development Public | Big Camera vs. Beauty Community Public | Big Camera vs. Asia Aviation Public | Big Camera vs. Gunkul Engineering Public |
| Chularat Hospital vs. Bangkok Chain Hospital | Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bumrungrad Hospital Public | Chularat Hospital vs. AP 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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