Correlation Between Bumrungrad Hospital and Waste Management
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Waste Management 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 Waste Management 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 Waste Management, you can compare the effects of market volatilities on Bumrungrad Hospital and Waste Management 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 Waste Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Waste Management.
Diversification Opportunities for Bumrungrad Hospital and Waste Management
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and Waste is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waste Management 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 Waste Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waste Management has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Waste Management go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Waste Management
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 5.93 times more return on investment than Waste Management. However, Bumrungrad Hospital is 5.93 times more volatile than Waste Management. It trades about 0.08 of its potential returns per unit of risk. Waste Management is currently generating about 0.06 per unit of risk. If you would invest 82.00 in Bumrungrad Hospital Public on September 4, 2024 and sell it today you would earn a total of 478.00 from holding Bumrungrad Hospital Public or generate 582.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Waste Management
Performance |
| Timeline |
| Bumrungrad Hospital |
| Waste Management |
Bumrungrad Hospital and Waste Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Waste Management
The main advantage of trading using opposite Bumrungrad Hospital and Waste Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Waste Management 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 Waste Management will offset losses from the drop in Waste Management'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 |
| Waste Management vs. TOTAL GABON | Waste Management vs. Walgreens Boots Alliance | Waste Management vs. Peak Resources Limited |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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