Correlation Between Bumrungrad Hospital and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Bumrungrad Hospital and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Superior Plus.
Diversification Opportunities for Bumrungrad Hospital and Superior Plus
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bumrungrad and Superior is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Superior Plus go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Superior Plus
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 3.83 times more return on investment than Superior Plus. However, Bumrungrad Hospital is 3.83 times more volatile than Superior Plus Corp. It trades about 0.08 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.04 per unit of risk. If you would invest 169.00 in Bumrungrad Hospital Public on September 12, 2024 and sell it today you would earn a total of 381.00 from holding Bumrungrad Hospital Public or generate 225.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Superior Plus Corp
Performance |
| Timeline |
| Bumrungrad Hospital |
| Superior Plus Corp |
Bumrungrad Hospital and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Superior Plus
The main advantage of trading using opposite Bumrungrad Hospital and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Universal Health Services | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. AIR PRODCHEMICALS | Superior Plus vs. Suntory Beverage Food | Superior Plus vs. Molson Coors Beverage | Superior Plus vs. Monster Beverage Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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