Correlation Between Bumrungrad Hospital and Gold Road
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Gold Road 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 Gold Road 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 Gold Road Resources, you can compare the effects of market volatilities on Bumrungrad Hospital and Gold Road 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 Gold Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Gold Road.
Diversification Opportunities for Bumrungrad Hospital and Gold Road
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bumrungrad and Gold is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Gold Road Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Road Resources 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 Gold Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Road Resources has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Gold Road go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Gold Road
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 2.97 times more return on investment than Gold Road. However, Bumrungrad Hospital is 2.97 times more volatile than Gold Road Resources. It trades about 0.08 of its potential returns per unit of risk. Gold Road Resources is currently generating about 0.03 per unit of risk. If you would invest 169.00 in Bumrungrad Hospital Public on September 12, 2024 and sell it today you would earn a total of 386.00 from holding Bumrungrad Hospital Public or generate 228.4% 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. Gold Road Resources
Performance |
| Timeline |
| Bumrungrad Hospital |
| Gold Road Resources |
Bumrungrad Hospital and Gold Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Gold Road
The main advantage of trading using opposite Bumrungrad Hospital and Gold Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Gold Road 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 Gold Road will offset losses from the drop in Gold Road'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 |
| Gold Road vs. Franco Nevada | Gold Road vs. Superior Plus Corp | Gold Road vs. SIVERS SEMICONDUCTORS AB | Gold Road vs. Norsk Hydro ASA |
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 Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |