Correlation Between Bumrungrad Hospital and SBM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and SBM OFFSHORE 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 SBM OFFSHORE 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 SBM OFFSHORE, you can compare the effects of market volatilities on Bumrungrad Hospital and SBM OFFSHORE 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 SBM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and SBM OFFSHORE.
Diversification Opportunities for Bumrungrad Hospital and SBM OFFSHORE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bumrungrad and SBM is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and SBM OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM OFFSHORE 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 SBM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM OFFSHORE has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and SBM OFFSHORE go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and SBM OFFSHORE
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 1.14 times more return on investment than SBM OFFSHORE. However, Bumrungrad Hospital is 1.14 times more volatile than SBM OFFSHORE. It trades about -0.06 of its potential returns per unit of risk. SBM OFFSHORE is currently generating about -0.08 per unit of risk. If you would invest 575.00 in Bumrungrad Hospital Public on September 13, 2024 and sell it today you would lose (20.00) from holding Bumrungrad Hospital Public or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. SBM OFFSHORE
Performance |
| Timeline |
| Bumrungrad Hospital |
| SBM OFFSHORE |
Bumrungrad Hospital and SBM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and SBM OFFSHORE
The main advantage of trading using opposite Bumrungrad Hospital and SBM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, SBM OFFSHORE 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 SBM OFFSHORE will offset losses from the drop in SBM OFFSHORE'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 |
| SBM OFFSHORE vs. Apple Inc | SBM OFFSHORE vs. Apple Inc | SBM OFFSHORE vs. Apple Inc | SBM OFFSHORE 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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