Correlation Between BRIT AMER and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both BRIT AMER and Bumrungrad 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 BRIT AMER and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRIT AMER TOBACCO and Bumrungrad Hospital Public, you can compare the effects of market volatilities on BRIT AMER and Bumrungrad 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 BRIT AMER with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRIT AMER and Bumrungrad Hospital.
Diversification Opportunities for BRIT AMER and Bumrungrad Hospital
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BRIT and Bumrungrad is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding BRIT AMER TOBACCO and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and BRIT AMER 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 BRIT AMER TOBACCO are associated (or correlated) with Bumrungrad Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumrungrad Hospital has no effect on the direction of BRIT AMER i.e., BRIT AMER and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between BRIT AMER and Bumrungrad Hospital
Assuming the 90 days trading horizon BRIT AMER is expected to generate 4.77 times less return on investment than Bumrungrad Hospital. But when comparing it to its historical volatility, BRIT AMER TOBACCO is 7.71 times less risky than Bumrungrad Hospital. It trades about 0.13 of its potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 171.00 in Bumrungrad Hospital Public on September 2, 2024 and sell it today you would earn a total of 389.00 from holding Bumrungrad Hospital Public or generate 227.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRIT AMER TOBACCO vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| BRIT AMER TOBACCO |
| Bumrungrad Hospital |
BRIT AMER and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRIT AMER and Bumrungrad Hospital
The main advantage of trading using opposite BRIT AMER and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRIT AMER position performs unexpectedly, Bumrungrad 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 Bumrungrad Hospital will offset losses from the drop in Bumrungrad Hospital's long position.| BRIT AMER vs. Gaztransport Technigaz SA | BRIT AMER vs. AUST AGRICULTURAL | BRIT AMER vs. ANTA SPORTS PRODUCT | BRIT AMER vs. PARKEN Sport Entertainment |
| Bumrungrad Hospital vs. Richter Gedeon Vegyszeti | Bumrungrad Hospital vs. Charoen Pokphand Foods | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. Origin Agritech |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |