Correlation Between Bumrungrad Hospital and Bridgestone
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Bridgestone 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 Bridgestone 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 Bridgestone, you can compare the effects of market volatilities on Bumrungrad Hospital and Bridgestone 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 Bridgestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Bridgestone.
Diversification Opportunities for Bumrungrad Hospital and Bridgestone
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bumrungrad and Bridgestone is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Bridgestone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgestone 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 Bridgestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgestone has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Bridgestone go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Bridgestone
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the Bridgestone. In addition to that, Bumrungrad Hospital is 2.04 times more volatile than Bridgestone. It trades about -0.39 of its total potential returns per unit of risk. Bridgestone is currently generating about 0.11 per unit of volatility. If you would invest 3,236 in Bridgestone on September 1, 2024 and sell it today you would earn a total of 113.00 from holding Bridgestone or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Bridgestone
Performance |
| Timeline |
| Bumrungrad Hospital |
| Bridgestone |
Bumrungrad Hospital and Bridgestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Bridgestone
The main advantage of trading using opposite Bumrungrad Hospital and Bridgestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Bridgestone 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 Bridgestone will offset losses from the drop in Bridgestone's long position.| Bumrungrad Hospital vs. Richter Gedeon Vegyszeti | Bumrungrad Hospital vs. Charoen Pokphand Foods | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. Origin Agritech |
| Bridgestone vs. Sabra Health Care | Bridgestone vs. LIFENET INSURANCE CO | Bridgestone vs. Bumrungrad Hospital Public | Bridgestone vs. Cardinal Health |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |