Correlation Between Bumrungrad Hospital and CDL INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and CDL INVESTMENT 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 CDL INVESTMENT 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 CDL INVESTMENT, you can compare the effects of market volatilities on Bumrungrad Hospital and CDL INVESTMENT 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 CDL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and CDL INVESTMENT.
Diversification Opportunities for Bumrungrad Hospital and CDL INVESTMENT
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bumrungrad and CDL is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and CDL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDL INVESTMENT 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 CDL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDL INVESTMENT has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and CDL INVESTMENT go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and CDL INVESTMENT
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the CDL INVESTMENT. In addition to that, Bumrungrad Hospital is 1.12 times more volatile than CDL INVESTMENT. It trades about -0.15 of its total potential returns per unit of risk. CDL INVESTMENT is currently generating about 0.04 per unit of volatility. If you would invest 42.00 in CDL INVESTMENT on September 12, 2024 and sell it today you would earn a total of 2.00 from holding CDL INVESTMENT or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. CDL INVESTMENT
Performance |
| Timeline |
| Bumrungrad Hospital |
| CDL INVESTMENT |
Bumrungrad Hospital and CDL INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and CDL INVESTMENT
The main advantage of trading using opposite Bumrungrad Hospital and CDL INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, CDL INVESTMENT 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 CDL INVESTMENT will offset losses from the drop in CDL INVESTMENT's 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 |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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