Correlation Between Bumrungrad Hospital and Aristocrat Leisure
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Aristocrat Leisure 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 Aristocrat Leisure 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 Aristocrat Leisure Limited, you can compare the effects of market volatilities on Bumrungrad Hospital and Aristocrat Leisure 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 Aristocrat Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Aristocrat Leisure.
Diversification Opportunities for Bumrungrad Hospital and Aristocrat Leisure
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and Aristocrat is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Aristocrat Leisure Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristocrat Leisure 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 Aristocrat Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristocrat Leisure has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Aristocrat Leisure go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Aristocrat Leisure
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the Aristocrat Leisure. In addition to that, Bumrungrad Hospital is 2.49 times more volatile than Aristocrat Leisure Limited. It trades about -0.35 of its total potential returns per unit of risk. Aristocrat Leisure Limited is currently generating about 0.42 per unit of volatility. If you would invest 3,722 in Aristocrat Leisure Limited on September 3, 2024 and sell it today you would earn a total of 438.00 from holding Aristocrat Leisure Limited or generate 11.77% 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. Aristocrat Leisure Limited
Performance |
| Timeline |
| Bumrungrad Hospital |
| Aristocrat Leisure |
Bumrungrad Hospital and Aristocrat Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Aristocrat Leisure
The main advantage of trading using opposite Bumrungrad Hospital and Aristocrat Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Aristocrat Leisure 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 Aristocrat Leisure will offset losses from the drop in Aristocrat Leisure'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 |
| Aristocrat Leisure vs. Boiron SA | Aristocrat Leisure vs. Darden Restaurants | Aristocrat Leisure vs. SWISS WATER DECAFFCOFFEE | Aristocrat Leisure vs. Lion One Metals |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| 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 |