Correlation Between Bumrungrad Hospital and Takkt AG

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Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Takkt AG 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 Takkt AG 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 Takkt AG, you can compare the effects of market volatilities on Bumrungrad Hospital and Takkt AG 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 Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Takkt AG.

Diversification Opportunities for Bumrungrad Hospital and Takkt AG

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Bumrungrad and Takkt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG 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 Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Takkt AG go up and down completely randomly.

Pair Corralation between Bumrungrad Hospital and Takkt AG

If you would invest  0.00  in Takkt AG on September 6, 2024 and sell it today you would earn a total of  0.00  from holding Takkt AG or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.35%
ValuesDaily Returns

Bumrungrad Hospital Public  vs.  Takkt AG

 Performance 
       Timeline  
Bumrungrad Hospital 

Risk-Adjusted Performance

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Over the last 90 days Bumrungrad Hospital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Takkt AG 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Takkt AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, Takkt AG is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bumrungrad Hospital and Takkt AG Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bumrungrad Hospital and Takkt AG

The main advantage of trading using opposite Bumrungrad Hospital and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.
The idea behind Bumrungrad Hospital Public and Takkt AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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