Correlation Between Bumrungrad Hospital and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and GREENX METALS 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 GREENX METALS 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 GREENX METALS LTD, you can compare the effects of market volatilities on Bumrungrad Hospital and GREENX METALS 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and GREENX METALS.
Diversification Opportunities for Bumrungrad Hospital and GREENX METALS
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bumrungrad and GREENX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and GREENX METALS go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and GREENX METALS
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the GREENX METALS. But the stock apears to be less risky and, when comparing its historical volatility, Bumrungrad Hospital Public is 2.02 times less risky than GREENX METALS. The stock trades about -0.02 of its potential returns per unit of risk. The GREENX METALS LTD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 49.00 in GREENX METALS LTD on January 24, 2025 and sell it today you would lose (6.00) from holding GREENX METALS LTD or give up 12.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. GREENX METALS LTD
Performance |
| Timeline |
| Bumrungrad Hospital |
| GREENX METALS LTD |
Bumrungrad Hospital and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and GREENX METALS
The main advantage of trading using opposite Bumrungrad Hospital and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| Bumrungrad Hospital vs. HCA Healthcare | Bumrungrad Hospital vs. Fresenius SE Co | Bumrungrad Hospital vs. Fresenius Medical Care | Bumrungrad Hospital vs. Ramsay Health Care |
| GREENX METALS vs. PLAYTIKA HOLDING DL 01 | GREENX METALS vs. Sabre Insurance Group | GREENX METALS vs. PLAYWAY SA ZY 10 | GREENX METALS vs. LG Display Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |