Correlation Between Bumrungrad Hospital and Axway Software
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Axway Software 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 Axway Software 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 Axway Software SA, you can compare the effects of market volatilities on Bumrungrad Hospital and Axway Software 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 Axway Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Axway Software.
Diversification Opportunities for Bumrungrad Hospital and Axway Software
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bumrungrad and Axway is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Axway Software SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axway Software SA 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 Axway Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axway Software SA has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Axway Software go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Axway Software
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 4.37 times more return on investment than Axway Software. However, Bumrungrad Hospital is 4.37 times more volatile than Axway Software SA. It trades about 0.08 of its potential returns per unit of risk. Axway Software SA is currently generating about 0.04 per unit of risk. If you would invest 183.00 in Bumrungrad Hospital Public on September 4, 2024 and sell it today you would earn a total of 377.00 from holding Bumrungrad Hospital Public or generate 206.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Axway Software SA
Performance |
| Timeline |
| Bumrungrad Hospital |
| Axway Software SA |
Bumrungrad Hospital and Axway Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Axway Software
The main advantage of trading using opposite Bumrungrad Hospital and Axway Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Axway Software 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 Axway Software will offset losses from the drop in Axway Software's long position.| Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
| Axway Software vs. Rocket Internet SE | Axway Software vs. Superior Plus Corp | Axway Software vs. NMI Holdings | Axway Software 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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