Correlation Between Bumrungrad Hospital and Digital Realty
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Digital Realty 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 Digital Realty 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 Digital Realty Trust, you can compare the effects of market volatilities on Bumrungrad Hospital and Digital Realty 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 Digital Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Digital Realty.
Diversification Opportunities for Bumrungrad Hospital and Digital Realty
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and Digital is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Digital Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Realty Trust 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 Digital Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Realty Trust has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Digital Realty go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Digital Realty
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the Digital Realty. In addition to that, Bumrungrad Hospital is 1.49 times more volatile than Digital Realty Trust. It trades about -0.15 of its total potential returns per unit of risk. Digital Realty Trust is currently generating about 0.24 per unit of volatility. If you would invest 14,314 in Digital Realty Trust on September 12, 2024 and sell it today you would earn a total of 3,888 from holding Digital Realty Trust or generate 27.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Digital Realty Trust
Performance |
| Timeline |
| Bumrungrad Hospital |
| Digital Realty Trust |
Bumrungrad Hospital and Digital Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Digital Realty
The main advantage of trading using opposite Bumrungrad Hospital and Digital Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Digital Realty 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 Digital Realty will offset losses from the drop in Digital Realty'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 |
| Digital Realty vs. Lion One Metals | Digital Realty vs. Playtech plc | Digital Realty vs. NetSol Technologies | Digital Realty vs. Western Copper and |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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