Correlation Between Bumrungrad Hospital and REINET INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and REINET INVESTMENTS 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 REINET INVESTMENTS 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 REINET INVESTMENTS SCA, you can compare the effects of market volatilities on Bumrungrad Hospital and REINET INVESTMENTS 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 REINET INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and REINET INVESTMENTS.
Diversification Opportunities for Bumrungrad Hospital and REINET INVESTMENTS
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bumrungrad and REINET is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and REINET INVESTMENTS SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REINET INVESTMENTS SCA 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 REINET INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REINET INVESTMENTS SCA has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and REINET INVESTMENTS go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and REINET INVESTMENTS
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the REINET INVESTMENTS. In addition to that, Bumrungrad Hospital is 2.03 times more volatile than REINET INVESTMENTS SCA. It trades about -0.35 of its total potential returns per unit of risk. REINET INVESTMENTS SCA is currently generating about 0.03 per unit of volatility. If you would invest 2,460 in REINET INVESTMENTS SCA on August 24, 2024 and sell it today you would earn a total of 20.00 from holding REINET INVESTMENTS SCA or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. REINET INVESTMENTS SCA
Performance |
| Timeline |
| Bumrungrad Hospital |
| REINET INVESTMENTS SCA |
Bumrungrad Hospital and REINET INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and REINET INVESTMENTS
The main advantage of trading using opposite Bumrungrad Hospital and REINET INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, REINET INVESTMENTS 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 REINET INVESTMENTS will offset losses from the drop in REINET INVESTMENTS'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 |
| REINET INVESTMENTS vs. The Bank of | REINET INVESTMENTS vs. Ameriprise Financial | REINET INVESTMENTS vs. Ares Management Corp | REINET INVESTMENTS vs. Superior Plus Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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