Correlation Between Bumrungrad Hospital and Cleanaway Waste
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Cleanaway Waste 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 Cleanaway Waste 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 Cleanaway Waste Management, you can compare the effects of market volatilities on Bumrungrad Hospital and Cleanaway Waste 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 Cleanaway Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Cleanaway Waste.
Diversification Opportunities for Bumrungrad Hospital and Cleanaway Waste
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bumrungrad and Cleanaway is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana 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 Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Cleanaway Waste go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Cleanaway Waste
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 3.69 times more return on investment than Cleanaway Waste. However, Bumrungrad Hospital is 3.69 times more volatile than Cleanaway Waste Management. It trades about 0.08 of its potential returns per unit of risk. Cleanaway Waste Management is currently generating about 0.02 per unit of risk. If you would invest 80.00 in Bumrungrad Hospital Public on September 13, 2024 and sell it today you would earn a total of 465.00 from holding Bumrungrad Hospital Public or generate 581.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Cleanaway Waste Management
Performance |
| Timeline |
| Bumrungrad Hospital |
| Cleanaway Waste Mana |
Bumrungrad Hospital and Cleanaway Waste Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Cleanaway Waste
The main advantage of trading using opposite Bumrungrad Hospital and Cleanaway Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Cleanaway Waste 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 Cleanaway Waste will offset losses from the drop in Cleanaway Waste's long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Universal Health Services | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
| Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc | Cleanaway Waste vs. Apple Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |