Correlation Between Bumrungrad Hospital and American Public
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and American 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 American 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 American Public Education, you can compare the effects of market volatilities on Bumrungrad Hospital and American 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 American Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and American Public.
Diversification Opportunities for Bumrungrad Hospital and American Public
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and American is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and American Public Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Public Education 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 American Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Public Education has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and American Public go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and American Public
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 1.37 times more return on investment than American Public. However, Bumrungrad Hospital is 1.37 times more volatile than American Public Education. It trades about 0.08 of its potential returns per unit of risk. American Public Education is currently generating about 0.04 per unit of risk. If you would invest 83.00 in Bumrungrad Hospital Public on August 26, 2024 and sell it today you would earn a total of 477.00 from holding Bumrungrad Hospital Public or generate 574.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. American Public Education
Performance |
| Timeline |
| Bumrungrad Hospital |
| American Public Education |
Bumrungrad Hospital and American Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and American Public
The main advantage of trading using opposite Bumrungrad Hospital and American Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, American 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 American Public will offset losses from the drop in American Public's long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech |
| American Public vs. Treasury Wine Estates | American Public vs. Bumrungrad Hospital Public | American Public vs. Natural Health Trends | American Public vs. AGRICULTBK HADR25 YC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |