Correlation Between Bumrungrad Hospital and Element Solutions
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Element Solutions 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 Element Solutions 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 Element Solutions, you can compare the effects of market volatilities on Bumrungrad Hospital and Element Solutions 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 Element Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Element Solutions.
Diversification Opportunities for Bumrungrad Hospital and Element Solutions
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and Element is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Element Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Element Solutions 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 Element Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Element Solutions has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Element Solutions go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Element Solutions
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 1.38 times more return on investment than Element Solutions. However, Bumrungrad Hospital is 1.38 times more volatile than Element Solutions. It trades about -0.13 of its potential returns per unit of risk. Element Solutions is currently generating about -0.29 per unit of risk. If you would invest 560.00 in Bumrungrad Hospital Public on September 22, 2024 and sell it today you would lose (35.00) from holding Bumrungrad Hospital Public or give up 6.25% 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. Element Solutions
Performance |
| Timeline |
| Bumrungrad Hospital |
| Element Solutions |
Bumrungrad Hospital and Element Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Element Solutions
The main advantage of trading using opposite Bumrungrad Hospital and Element Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Element Solutions 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 Element Solutions will offset losses from the drop in Element Solutions' long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Select Medical Holdings | Bumrungrad Hospital vs. Medicover AB | Bumrungrad Hospital vs. Charoen Pokphand Foods |
| Element Solutions vs. CVS Health | Element Solutions vs. Sabra Health Care | Element Solutions vs. Bumrungrad Hospital Public | Element Solutions vs. Datalogic SpA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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