Correlation Between Bumrungrad Hospital and Peak Minerals
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Peak Minerals 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 Peak Minerals 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 Peak Minerals Limited, you can compare the effects of market volatilities on Bumrungrad Hospital and Peak Minerals 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 Peak Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Peak Minerals.
Diversification Opportunities for Bumrungrad Hospital and Peak Minerals
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and Peak is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Peak Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak Minerals Limited 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 Peak Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Minerals Limited has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Peak Minerals go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Peak Minerals
Assuming the 90 days trading horizon Bumrungrad Hospital is expected to generate 9.17 times less return on investment than Peak Minerals. But when comparing it to its historical volatility, Bumrungrad Hospital Public is 6.68 times less risky than Peak Minerals. It trades about 0.08 of its potential returns per unit of risk. Peak Minerals Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.25 in Peak Minerals Limited on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Peak Minerals Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Peak Minerals Limited
Performance |
| Timeline |
| Bumrungrad Hospital |
| Peak Minerals Limited |
Bumrungrad Hospital and Peak Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Peak Minerals
The main advantage of trading using opposite Bumrungrad Hospital and Peak Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Peak Minerals 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 Peak Minerals will offset losses from the drop in Peak Minerals' 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 |
| Peak Minerals vs. CVW CLEANTECH INC | Peak Minerals vs. Cleanaway Waste Management | Peak Minerals vs. DiamondRock Hospitality | Peak Minerals vs. Evolution Mining Limited |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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