Correlation Between Bumrungrad Hospital and WESTERN DIGITAL
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and WESTERN DIGITAL 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 WESTERN DIGITAL 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 WESTERN DIGITAL, you can compare the effects of market volatilities on Bumrungrad Hospital and WESTERN DIGITAL 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 WESTERN DIGITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and WESTERN DIGITAL.
Diversification Opportunities for Bumrungrad Hospital and WESTERN DIGITAL
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bumrungrad and WESTERN is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and WESTERN DIGITAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESTERN DIGITAL 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 WESTERN DIGITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESTERN DIGITAL has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and WESTERN DIGITAL go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and WESTERN DIGITAL
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 2.96 times more return on investment than WESTERN DIGITAL. However, Bumrungrad Hospital is 2.96 times more volatile than WESTERN DIGITAL. It trades about 0.08 of its potential returns per unit of risk. WESTERN DIGITAL is currently generating about 0.08 per unit of risk. If you would invest 81.00 in Bumrungrad Hospital Public on September 12, 2024 and sell it today you would earn a total of 469.00 from holding Bumrungrad Hospital Public or generate 579.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. WESTERN DIGITAL
Performance |
| Timeline |
| Bumrungrad Hospital |
| WESTERN DIGITAL |
Bumrungrad Hospital and WESTERN DIGITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and WESTERN DIGITAL
The main advantage of trading using opposite Bumrungrad Hospital and WESTERN DIGITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, WESTERN DIGITAL 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 WESTERN DIGITAL will offset losses from the drop in WESTERN DIGITAL'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 |
| WESTERN DIGITAL vs. Pembina Pipeline Corp | WESTERN DIGITAL vs. MOLSON RS BEVERAGE | WESTERN DIGITAL vs. AEON STORES | WESTERN DIGITAL vs. Retail Estates NV |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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