Correlation Between Bumrungrad Hospital and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and ASURE SOFTWARE 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 ASURE SOFTWARE 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 ASURE SOFTWARE, you can compare the effects of market volatilities on Bumrungrad Hospital and ASURE SOFTWARE 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 ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and ASURE SOFTWARE.
Diversification Opportunities for Bumrungrad Hospital and ASURE SOFTWARE
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bumrungrad and ASURE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE 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 ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and ASURE SOFTWARE
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 2.81 times more return on investment than ASURE SOFTWARE. However, Bumrungrad Hospital is 2.81 times more volatile than ASURE SOFTWARE. It trades about 0.07 of its potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.02 per unit of risk. If you would invest 195.00 in Bumrungrad Hospital Public on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Bumrungrad Hospital Public or generate 187.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. ASURE SOFTWARE
Performance |
| Timeline |
| Bumrungrad Hospital |
| ASURE SOFTWARE |
Bumrungrad Hospital and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and ASURE SOFTWARE
The main advantage of trading using opposite Bumrungrad Hospital and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE'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 |
| ASURE SOFTWARE vs. TOTAL GABON | ASURE SOFTWARE vs. Walgreens Boots Alliance | ASURE SOFTWARE 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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