Correlation Between Bumrungrad Hospital and Kirin Holdings
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Kirin Holdings 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 Kirin Holdings 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 Kirin Holdings, you can compare the effects of market volatilities on Bumrungrad Hospital and Kirin Holdings 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 Kirin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Kirin Holdings.
Diversification Opportunities for Bumrungrad Hospital and Kirin Holdings
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bumrungrad and Kirin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin Holdings 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 Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Kirin Holdings go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Kirin Holdings
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the Kirin Holdings. In addition to that, Bumrungrad Hospital is 2.22 times more volatile than Kirin Holdings. It trades about -0.35 of its total potential returns per unit of risk. Kirin Holdings is currently generating about -0.16 per unit of volatility. If you would invest 1,370 in Kirin Holdings on September 3, 2024 and sell it today you would lose (70.00) from holding Kirin Holdings or give up 5.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Kirin Holdings
Performance |
| Timeline |
| Bumrungrad Hospital |
| Kirin Holdings |
Bumrungrad Hospital and Kirin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Kirin Holdings
The main advantage of trading using opposite Bumrungrad Hospital and Kirin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Kirin Holdings 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 Kirin Holdings will offset losses from the drop in Kirin Holdings' long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Richter Gedeon Vegyszeti | Bumrungrad Hospital vs. Select Medical Holdings | Bumrungrad Hospital vs. Medicover AB |
| Kirin Holdings vs. Bumrungrad Hospital Public | Kirin Holdings vs. Perseus Mining Limited | Kirin Holdings vs. YOOMA WELLNESS INC | Kirin Holdings vs. HEALTHCARE REAL A |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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