Correlation Between Bumrungrad Hospital and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Eidesvik Offshore 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 Eidesvik Offshore 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 Eidesvik Offshore ASA, you can compare the effects of market volatilities on Bumrungrad Hospital and Eidesvik Offshore 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 Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Eidesvik Offshore.
Diversification Opportunities for Bumrungrad Hospital and Eidesvik Offshore
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bumrungrad and Eidesvik is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA 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 Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Eidesvik Offshore
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 2.24 times more return on investment than Eidesvik Offshore. However, Bumrungrad Hospital is 2.24 times more volatile than Eidesvik Offshore ASA. It trades about 0.08 of its potential returns per unit of risk. Eidesvik Offshore ASA 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| Bumrungrad Hospital |
| Eidesvik Offshore ASA |
Bumrungrad Hospital and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Eidesvik Offshore
The main advantage of trading using opposite Bumrungrad Hospital and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Eidesvik Offshore 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 Eidesvik Offshore will offset losses from the drop in Eidesvik Offshore'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 |
| Eidesvik Offshore vs. SCANDMEDICAL SOLDK 040 | Eidesvik Offshore vs. MEDICAL FACILITIES NEW | Eidesvik Offshore vs. Uber Technologies | Eidesvik Offshore vs. PKSHA TECHNOLOGY INC |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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