Correlation Between Bumrungrad Hospital and Evolution Mining
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Evolution Mining 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 Evolution Mining 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 Evolution Mining Limited, you can compare the effects of market volatilities on Bumrungrad Hospital and Evolution Mining 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 Evolution Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Evolution Mining.
Diversification Opportunities for Bumrungrad Hospital and Evolution Mining
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bumrungrad and Evolution is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Evolution Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Mining 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 Evolution Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Mining has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Evolution Mining go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Evolution Mining
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 2.76 times more return on investment than Evolution Mining. However, Bumrungrad Hospital is 2.76 times more volatile than Evolution Mining Limited. It trades about 0.07 of its potential returns per unit of risk. Evolution Mining Limited is currently generating about 0.07 per unit of risk. If you would invest 164.00 in Bumrungrad Hospital Public on September 12, 2024 and sell it today you would earn a total of 386.00 from holding Bumrungrad Hospital Public or generate 235.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Evolution Mining Limited
Performance |
| Timeline |
| Bumrungrad Hospital |
| Evolution Mining |
Bumrungrad Hospital and Evolution Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Evolution Mining
The main advantage of trading using opposite Bumrungrad Hospital and Evolution Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Evolution Mining 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 Evolution Mining will offset losses from the drop in Evolution Mining'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 |
| Evolution Mining vs. Franco Nevada | Evolution Mining vs. Superior Plus Corp | Evolution Mining vs. SIVERS SEMICONDUCTORS AB | Evolution Mining vs. Norsk Hydro ASA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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