Correlation Between Bumrungrad Hospital and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and ATRYS 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 ATRYS 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 ATRYS HEALTH SA, you can compare the effects of market volatilities on Bumrungrad Hospital and ATRYS 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 ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and ATRYS HEALTH.
Diversification Opportunities for Bumrungrad Hospital and ATRYS HEALTH
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bumrungrad and ATRYS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA 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 ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and ATRYS HEALTH
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 3.29 times more return on investment than ATRYS HEALTH. However, Bumrungrad Hospital is 3.29 times more volatile than ATRYS HEALTH SA. It trades about 0.08 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.01 per unit of risk. If you would invest 186.00 in Bumrungrad Hospital Public on August 28, 2024 and sell it today you would earn a total of 374.00 from holding Bumrungrad Hospital Public or generate 201.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.53% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Bumrungrad Hospital |
| ATRYS HEALTH SA |
Bumrungrad Hospital and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and ATRYS HEALTH
The main advantage of trading using opposite Bumrungrad Hospital and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, ATRYS 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH'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 |
| ATRYS HEALTH vs. MeVis Medical Solutions | ATRYS HEALTH vs. AVITA Medical | ATRYS HEALTH vs. SAFETY MEDICAL PROD | ATRYS HEALTH vs. Advanced Medical Solutions |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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