Correlation Between Bumrungrad Hospital and GUARDANT HEALTH
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and GUARDANT HEALTH 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 GUARDANT HEALTH 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 GUARDANT HEALTH CL, you can compare the effects of market volatilities on Bumrungrad Hospital and GUARDANT HEALTH 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 GUARDANT HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and GUARDANT HEALTH.
Diversification Opportunities for Bumrungrad Hospital and GUARDANT HEALTH
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and GUARDANT is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and GUARDANT HEALTH CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUARDANT HEALTH CL 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 GUARDANT HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUARDANT HEALTH CL has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and GUARDANT HEALTH go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and GUARDANT HEALTH
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 0.53 times more return on investment than GUARDANT HEALTH. However, Bumrungrad Hospital Public is 1.87 times less risky than GUARDANT HEALTH. It trades about 0.07 of its potential returns per unit of risk. GUARDANT HEALTH CL is currently generating about -0.09 per unit of risk. If you would invest 490.00 in Bumrungrad Hospital Public on November 28, 2024 and sell it today you would earn a total of 15.00 from holding Bumrungrad Hospital Public or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. GUARDANT HEALTH CL
Performance |
| Timeline |
| Bumrungrad Hospital |
| GUARDANT HEALTH CL |
Bumrungrad Hospital and GUARDANT HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and GUARDANT HEALTH
The main advantage of trading using opposite Bumrungrad Hospital and GUARDANT HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, GUARDANT HEALTH 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 GUARDANT HEALTH will offset losses from the drop in GUARDANT HEALTH's long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Select Medical Holdings | Bumrungrad Hospital vs. Medicover AB | Bumrungrad Hospital vs. Charoen Pokphand Foods |
| GUARDANT HEALTH vs. ANTA Sports Products | GUARDANT HEALTH vs. SBI Insurance Group | GUARDANT HEALTH vs. The Hanover Insurance | GUARDANT HEALTH vs. RCS Mediagroup SpA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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