Correlation Between Bumrungrad Hospital and ORMAT TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES, you can compare the effects of market volatilities on Bumrungrad Hospital and ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and ORMAT TECHNOLOGIES.
Diversification Opportunities for Bumrungrad Hospital and ORMAT TECHNOLOGIES
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bumrungrad and ORMAT is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and ORMAT TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORMAT TECHNOLOGIES has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and ORMAT TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and ORMAT TECHNOLOGIES
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the ORMAT TECHNOLOGIES. In addition to that, Bumrungrad Hospital is 1.78 times more volatile than ORMAT TECHNOLOGIES. It trades about -0.15 of its total potential returns per unit of risk. ORMAT TECHNOLOGIES is currently generating about 0.14 per unit of volatility. If you would invest 6,629 in ORMAT TECHNOLOGIES on September 12, 2024 and sell it today you would earn a total of 801.00 from holding ORMAT TECHNOLOGIES or generate 12.08% 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. ORMAT TECHNOLOGIES
Performance |
| Timeline |
| Bumrungrad Hospital |
| ORMAT TECHNOLOGIES |
Bumrungrad Hospital and ORMAT TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and ORMAT TECHNOLOGIES
The main advantage of trading using opposite Bumrungrad Hospital and ORMAT TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES will offset losses from the drop in ORMAT TECHNOLOGIES'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 |
| ORMAT TECHNOLOGIES vs. Apple Inc | ORMAT TECHNOLOGIES vs. Apple Inc | ORMAT TECHNOLOGIES vs. Apple Inc | ORMAT TECHNOLOGIES vs. Apple Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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