Correlation Between Bumrungrad Hospital and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Haverty Furniture 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 Haverty Furniture 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 Haverty Furniture Companies, you can compare the effects of market volatilities on Bumrungrad Hospital and Haverty Furniture 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 Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Haverty Furniture.
Diversification Opportunities for Bumrungrad Hospital and Haverty Furniture
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bumrungrad and Haverty is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture 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 Haverty Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haverty Furniture has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Haverty Furniture go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Haverty Furniture
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 1.14 times more return on investment than Haverty Furniture. However, Bumrungrad Hospital is 1.14 times more volatile than Haverty Furniture Companies. It trades about 0.01 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about -0.19 per unit of risk. If you would invest 525.00 in Bumrungrad Hospital Public on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Bumrungrad Hospital Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Haverty Furniture Companies
Performance |
| Timeline |
| Bumrungrad Hospital |
| Haverty Furniture |
Bumrungrad Hospital and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Haverty Furniture
The main advantage of trading using opposite Bumrungrad Hospital and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Haverty Furniture 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 Haverty Furniture will offset losses from the drop in Haverty Furniture's long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Richter Gedeon Vegyszeti | Bumrungrad Hospital vs. Select Medical Holdings | Bumrungrad Hospital vs. Medicover AB |
| Haverty Furniture vs. MARKET VECTR RETAIL | Haverty Furniture vs. Retail Estates NV | Haverty Furniture vs. JD SPORTS FASH | Haverty Furniture vs. PARKEN Sport Entertainment |
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.
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