Correlation Between Bumrungrad Hospital and Norfolk Southern
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Norfolk Southern 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 Norfolk Southern 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 Norfolk Southern, you can compare the effects of market volatilities on Bumrungrad Hospital and Norfolk Southern 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 Norfolk Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Norfolk Southern.
Diversification Opportunities for Bumrungrad Hospital and Norfolk Southern
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and Norfolk is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Norfolk Southern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norfolk Southern 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 Norfolk Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norfolk Southern has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Norfolk Southern go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Norfolk Southern
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the Norfolk Southern. In addition to that, Bumrungrad Hospital is 1.07 times more volatile than Norfolk Southern. It trades about -0.33 of its total potential returns per unit of risk. Norfolk Southern is currently generating about 0.21 per unit of volatility. If you would invest 22,800 in Norfolk Southern on September 5, 2024 and sell it today you would earn a total of 3,200 from holding Norfolk Southern or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Norfolk Southern
Performance |
| Timeline |
| Bumrungrad Hospital |
| Norfolk Southern |
Bumrungrad Hospital and Norfolk Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Norfolk Southern
The main advantage of trading using opposite Bumrungrad Hospital and Norfolk Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Norfolk Southern 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 Norfolk Southern will offset losses from the drop in Norfolk Southern's long position.| Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
| Norfolk Southern vs. MIRAMAR HOTEL INV | Norfolk Southern vs. Bumrungrad Hospital Public | Norfolk Southern vs. Natural Health Trends | Norfolk Southern vs. HYATT HOTELS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |