Correlation Between Bumrungrad Hospital and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and J+J SNACK 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 J+J SNACK 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 JJ SNACK FOODS, you can compare the effects of market volatilities on Bumrungrad Hospital and J+J SNACK 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 J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and J+J SNACK.
Diversification Opportunities for Bumrungrad Hospital and J+J SNACK
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bumrungrad and J+J is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and JJ SNACK FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJ SNACK FOODS 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 J+J SNACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJ SNACK FOODS has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and J+J SNACK go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and J+J SNACK
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the J+J SNACK. In addition to that, Bumrungrad Hospital is 2.33 times more volatile than JJ SNACK FOODS. It trades about -0.4 of its total potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.15 per unit of volatility. If you would invest 15,400 in JJ SNACK FOODS on August 28, 2024 and sell it today you would earn a total of 600.00 from holding JJ SNACK FOODS or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. JJ SNACK FOODS
Performance |
| Timeline |
| Bumrungrad Hospital |
| JJ SNACK FOODS |
Bumrungrad Hospital and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and J+J SNACK
The main advantage of trading using opposite Bumrungrad Hospital and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, J+J SNACK 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 J+J SNACK will offset losses from the drop in J+J SNACK's long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech |
| J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. NMI Holdings | J+J SNACK vs. Origin Agritech | J+J SNACK vs. SIVERS SEMICONDUCTORS AB |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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