Correlation Between Bumrungrad Hospital and Check Point
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Check Point 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 Check Point 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 Check Point Software, you can compare the effects of market volatilities on Bumrungrad Hospital and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Check Point.
Diversification Opportunities for Bumrungrad Hospital and Check Point
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bumrungrad and Check is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Check Point go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Check Point
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 4.54 times more return on investment than Check Point. However, Bumrungrad Hospital is 4.54 times more volatile than Check Point Software. It trades about 0.08 of its potential returns per unit of risk. Check Point Software is currently generating about 0.05 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Check Point Software
Performance |
| Timeline |
| Bumrungrad Hospital |
| Check Point Software |
Bumrungrad Hospital and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Check Point
The main advantage of trading using opposite Bumrungrad Hospital and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point'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 |
| Check Point vs. Alfa Financial Software | Check Point vs. ASURE SOFTWARE | Check Point vs. CPU SOFTWAREHOUSE | Check Point vs. USU Software AG |
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.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| 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 |