Correlation Between Bumrungrad Hospital and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated, you can compare the effects of market volatilities on Bumrungrad Hospital and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Corning Incorporated.
Diversification Opportunities for Bumrungrad Hospital and Corning Incorporated
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bumrungrad and Corning is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Corning Incorporated go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Corning Incorporated
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the Corning Incorporated. In addition to that, Bumrungrad Hospital is 1.84 times more volatile than Corning Incorporated. It trades about -0.33 of its total potential returns per unit of risk. Corning Incorporated is currently generating about 0.2 per unit of volatility. If you would invest 4,344 in Corning Incorporated on September 5, 2024 and sell it today you would earn a total of 335.00 from holding Corning Incorporated or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Corning Incorporated
Performance |
| Timeline |
| Bumrungrad Hospital |
| Corning Incorporated |
Bumrungrad Hospital and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Corning Incorporated
The main advantage of trading using opposite Bumrungrad Hospital and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
| Corning Incorporated vs. MARKET VECTR RETAIL | Corning Incorporated vs. Globe Trade Centre | Corning Incorporated vs. ADRIATIC METALS LS 013355 | Corning Incorporated vs. CARSALESCOM |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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