Correlation Between Bumrungrad Hospital and Orange SA
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Orange SA 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 Orange SA 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 Orange SA, you can compare the effects of market volatilities on Bumrungrad Hospital and Orange SA 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 Orange SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Orange SA.
Diversification Opportunities for Bumrungrad Hospital and Orange SA
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bumrungrad and Orange is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Orange SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orange SA 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 Orange SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orange SA has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Orange SA go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Orange SA
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 7.55 times more return on investment than Orange SA. However, Bumrungrad Hospital is 7.55 times more volatile than Orange SA. It trades about 0.08 of its potential returns per unit of risk. Orange SA is currently generating about -0.01 per unit of risk. If you would invest 176.00 in Bumrungrad Hospital Public on September 14, 2024 and sell it today you would earn a total of 369.00 from holding Bumrungrad Hospital Public or generate 209.66% 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. Orange SA
Performance |
| Timeline |
| Bumrungrad Hospital |
| Orange SA |
Bumrungrad Hospital and Orange SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Orange SA
The main advantage of trading using opposite Bumrungrad Hospital and Orange SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Orange SA 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 Orange SA will offset losses from the drop in Orange SA'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 |
| Orange SA vs. Bumrungrad Hospital Public | Orange SA vs. Lion Biotechnologies | Orange SA vs. Cardinal Health | Orange SA vs. AAC TECHNOLOGHLDGADR |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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