Correlation Between Bumrungrad Hospital and CPU SOFTWAREHOUSE
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE, you can compare the effects of market volatilities on Bumrungrad Hospital and CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and CPU SOFTWAREHOUSE.
Diversification Opportunities for Bumrungrad Hospital and CPU SOFTWAREHOUSE
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bumrungrad and CPU is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and CPU SOFTWAREHOUSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPU SOFTWAREHOUSE has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and CPU SOFTWAREHOUSE go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and CPU SOFTWAREHOUSE
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 2.14 times more return on investment than CPU SOFTWAREHOUSE. However, Bumrungrad Hospital is 2.14 times more volatile than CPU SOFTWAREHOUSE. It trades about 0.08 of its potential returns per unit of risk. CPU SOFTWAREHOUSE is currently generating about -0.03 per unit of risk. If you would invest 80.00 in Bumrungrad Hospital Public on September 3, 2024 and sell it today you would earn a total of 480.00 from holding Bumrungrad Hospital Public or generate 600.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. CPU SOFTWAREHOUSE
Performance |
| Timeline |
| Bumrungrad Hospital |
| CPU SOFTWAREHOUSE |
Bumrungrad Hospital and CPU SOFTWAREHOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and CPU SOFTWAREHOUSE
The main advantage of trading using opposite Bumrungrad Hospital and CPU SOFTWAREHOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE will offset losses from the drop in CPU SOFTWAREHOUSE'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 |
| CPU SOFTWAREHOUSE vs. Astral Foods Limited | CPU SOFTWAREHOUSE vs. PennyMac Mortgage Investment | CPU SOFTWAREHOUSE vs. NISSIN FOODS HLDGS | CPU SOFTWAREHOUSE vs. United Natural Foods |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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